Honda and Ford Propose Job Cuts to Prepare for EV Transition

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In previous articles, we already said that the fate of automotive jobs is sealed. Electric cars will demand fewer people to be manufactured. That will impact suppliers the most, but legacy automakers are also taking precautions, as Ford and Honda made very clear. First, Ford announced it would offer voluntary buyouts to cut 1,000 white-collar jobs in the U.S. Honda proposed early retirement, and more than 2,000 of its workers accepted that in Japan.
The difference between them is that Ford has just opened its program. It will offer six months of wages and six months of health care for the workers who accept joining it. In Honda’s case, the program was opened in April and closed in July. These 2,000 workers would represent 5% of Honda’s full-time staff in Japan.

Apart from receiving their retirement pay, these workers aged between 55 and 63 will also receive three years of salaries. According to Nikkei Asia, it is the first time in ten years that Honda offers an early retirement package to its workers in Japan. The goal is to restructure the workforce to produce more EVs.

The fact that both stories became public close to each other shows that the EV shift will intensify. Other automakers should follow suit soon. Apart from reducing their workforces, these companies may also try to relocate them to other jobs to ease the impact that electric car production may cause.

What most automakers are investing in is IT hirings. They want to change “from a car company working with tech to a tech company working with cars,” as Luca de Meo said when he presented the Renaulution strategic plan for Renault. Ironically, that means people from Silicon Valley are more likely to land a job in a carmaker than someone who lives in Michigan, for example. If that is your goal, you know the path to follow.

Sources: Nikkei Asia and Automotive News
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About the author: Gustavo Henrique Ruffo
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Motoring writer since 1998, Gustavo wants to write relevant stories about cars and their shift to a sustainable future.
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