Ford Cuts 3,000 Jobs to Invest in Electric Vehicles and Software

Ford has announced it will cut 3,000 jobs, mainly in North America and India, as it restructures to catch up with Tesla in the race to develop electric vehicles and software.

Ford CEO Jim Farley has been saying that the automaker doesn’t have enough employees with the necessary skills to deal with an industry that is shifting toward electric vehicles and digital services.

“We are eliminating positions, reorganizing, and simplifying functions across the company. You’ll hear more details from the leaders of your business area this week,” Farley and Ford Chairman Bill Ford wrote in an email.

Like Tesla, Ford wants to generate more revenue through services that rely on digital software and connectivity.

In the email to staff, Farley and Ford said the company’s cost structure “is not competitive compared to traditional and new competitors.”

Rising prices for batteries, raw materials, and transportation are putting additional pressure on Ford and other automakers.

Still, Ford maintained its profit forecast for 2022, despite $3 billion in higher costs due to inflation.

Leaders of the United Auto Workers union, which represents workers at the Detroit automakers' plants, have expressed concern that electric vehicles may lead to fewer manufacturing jobs and more work at battery and electric vehicle equipment plants, which are not unionized.

Source: CNN

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