Ford is laying off thousands of workers, and here’s the memo that explains why.

The cuts primarily affect staff in the US, Canada, and India

According to The Wall Street Journal, Ford is laying off approximately 3,000 employees and contract workers, with the majority of the layoffs hitting personnel in the United States, Canada, and India. Chairman Bill Ford and CEO Jim Farley delivered a note to employees on Monday telling them of the layoffs, and affected employees will be notified later this week.

Ford

“Building this future necessitates rethinking and redefining practically every part of how we have worked for more than a century,” Ford and Farley wrote in the memo, which we have shared at the end of this piece. “It necessitates concentration, clarity, and speed.” And, as we’ve stated in recent months, that involves reallocating resources and tackling our uncompetitive cost structure against both conventional and emerging competitors.”

Approximately 2,000 paid positions and 1,000 agency (or contract worker) positions will be affected. It is unclear how the cuts will be distributed between Ford Blue, which manages internal combustion engine (ICE) vehicles, and Ford Model E, which manages electric vehicles (EVs). T.R. Reid, a Ford Blue spokesperson, tells The Verge that a greater percentage of the cuts affect Ford Blue because it is a higher proportion of the company’s operations, but he declines to disclose a particular number.

According to reports from July, Ford was intending to lay off employees. Bloomberg reported at the time that the corporation was preparing to lay off up to 8,000 employees, including Ford Blue.

Ford Blue and Ford Model E were established earlier this year; the corporation stated in its announcement of the divisions that Ford Blue would “drive growth and profitability” while Ford Model E would “accelerate research and delivery of breakthrough electric vehicles at scale.”

Ford isn’t the only automaker that has laid off workers in recent weeks. Rivian lay off 6% of its workforce, Argo AI, a Ford-backed firm, laid off roughly 150 employees, and Tesla laid off personnel who assisted in the training of its Autopilot AI system.

Here is the memo sent to staff from Ford and Farley:

Ford Team,

As you are aware, our organisation is undergoing a big shift. Our sector and the commercial environment in which we operate are rapidly changing.

We have an opportunity to lead this exciting new era of connected and electrified vehicles; generate the most growth and value for Ford and our stakeholders since the Model T; and continue to make a positive influence in the lives of our customers and society at large.

To build this future, we must change and reshape nearly every facet of how we have worked for more than a century. It necessitates concentration, clarity, and speed. And, as we’ve mentioned in recent months, it involves reallocating resources and correcting our uncompetitive cost structure in comparison to both conventional and emerging competitors.

We committed to provide information as judgments were taken. As we address all expenses, from materials to quality, we are advising several Ford teammates this week in the United States, Canada, and at FBS in India that their roles are being removed. We are decreasing our salaried workforce by around 2,000 people and agency personnel by about 1,000. These measures are the result of considerable restructuring of Ford’s operations outside of North America during the last few years.

We worked in a new way than before, assessing each team’s altering work statement in relation to our Ford+ goal. We are removing work and rearranging and simplifying functions throughout the organisation. More details will be provided by the heads of your department later this week.

Nothing changes the fact that this is a trying and emotional period. Friends and coworkers are departing the company this week, and we want to recognise them for their contributions to Ford. We have a responsibility to care for and support people affected, and we will do so by offering not only benefits but also significant assistance in finding new job prospects.

Thank you for everything you do for Ford. Please continue to support one another, especially employees departing the company, as we work to create a strong and sustainable future.

Bill and Jim

The big question: Which is better between ford and robotaxi

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