June 26 (UPI) — Ford Motor confirmed Monday it will lay off salaried workers and engineers in the United States and Canada this week as part of the automaker’s restructuring plan to cut billions in costs.
The layoffs will cut across all three divisions of the company including Ford Blue, the traditional internal combustion engine division; Model e, Ford’s electric vehicle unit; and Ford Pro, the company’s fleet service operations.
Supervisors at Ford told employees in a number of departments to work remotely Tuesday and Wednesday so they can notify those being terminated in private, company spokesman T.R. Reid told the Detroit Free Press.
“Functions in different parts of the business had small group meetings, not one large town hall,” Reid said. “They were alerted that we’d be making some staffing changes consistent with what we’ve been talking about for the last two years — and what we’ll continue to do going forward.”
All three of the company’s divisions have been undergoing operations restructuring, under the Ford+ plan, since Jim Farley took over as chief executive officer several years ago.
Compared to its competitors, Ford has about a $7 billion cost disadvantage, according to Farley who said the company is actively addressing the disparity.
“The different priorities and ambitions of the company within the Ford+ plan has implications for the skills you need, the way you employ them and, ultimately, in how you’re staffed,” Reid explained.
In its most recent quarterly filing, Ford said it expected to incur total charges, ranging between $1.5 billion and $2 billion, “primarily attributable to employee separations and supplier settlements,” in 2023.
In August, Ford cut 3,000 workers in North America and more recently, 3,800 employees in Europe. The company also cut a number of independent contractors across all three divisions last week. The company did not say how many workers would be affected in this latest round of layoffs.
“Delivering our Ford+ plan for growth and value creation includes increasing quality, lowering costs, investing in our priorities, and adjusting staffing to match the capabilities we need,” Ford said in a statement Monday. “People affected by the changes will be offered severance pay, benefits and significant help to find new career opportunities.”
“The primary objective is the business is more focused, it’s faster moving, it’s more accountable, and, yes, reduces costs in the process,” Reid said.
“This will be fundamental to how we run the business over time. We’re going to manage the needs of the business in real time, over time.”