According to the letter signed by CEO Jim Farley and Executive Chair Bill Ford, the automaker is cutting 2,000 salaried positions and 1,000 agency jobs. The affected people work for Ford in the U.S., Canada, and India. Previous information indicated that the job cuts would only affect Ford Blue employees. Still, it turns out that some people working at the Model e EV division will also be laid off. Cuts are also being made at Ford Credit, a Ford spokeswoman confirmed.
“Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” Farley and Ford wrote. “It requires focus, clarity, and speed. And as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors.”
The letter continues by assuring people who lost their jobs that they will get benefits and “help to find new career opportunities.” It’s unclear if the latter implies they will get new jobs inside the company. Switching the auto industry to manufacturing electric vehicles will cause a lot of jobs to disappear, as EVs use far fewer components. Electric cars are also easier to put together, meaning fewer workers are needed on the assembly lines.