Ford lays off thousands of employees

Ford is laying off about 3,000 employees and contract workers, with the cuts mainly affecting staff in the US, Canada and India. The Wall Street Journal reports. Chairman Bill Ford and CEO Jim Farley sent a memo on Monday notifying staff of the layoffs, with affected employees to be notified later this week.

“To build this future, virtually every aspect of the way we’ve worked for more than a century needs to change and reshape,” Ford and Farley said in the memo, according to CNBC. “It requires focus, clarity and speed. And, as we’ve discussed over the past few months, that means we need to reallocate resources and address our cost structure, which is uncompetitive against traditional and new competitors.”

It’s unclear how the cuts could be spread across Ford Blue, which manages its internal combustion engine (ICE) vehicles, and Ford Model E, which manages its electric vehicles (EVs). A Ford spokesperson did not immediately respond to a request for comment.

Reports from July indicated that Ford was planning to lay off staff. At the time, Bloomberg reported that the company was gearing up to cut as many as 8,000 employees and that Ford Blue would be affected.

Ford created Ford Blue and Ford Model E earlier this year; the company said in its divisional announcement that it would continue to expand its ICE vehicle portfolio with Ford Blue to “drive growth and profitability,” while Ford Model E “will accelerate innovation and delivery of breakthrough electric vehicles at scale.”

Ford isn’t the only auto company to lay off workers in recent weeks. Rivian laid off 6 percent of its workforce, Ford-backed startup Argo AI laid off about 150 employees, and Tesla fired employees who helped train its Autopilot AI system.

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