Ford Motor has announced on Monday that it is going to expel 3,000 of its confirmed office workers and contract employees from the company.
The company has taken this decision to reduce its expenses in view of the future of the company for electric vehicles. For this, the company informed its employees by an email that the company will start notifying the employees to be laid off from this week.
It is worth noting that about 183,000 employees work for the company, most of whom work in the US, Canada and India. About 2000 employees in Dearborn and Michigan will be cut, the rest 1000 will be employees working in contract positions.
Media companies, including the Wall Street Journal, had been reporting since July that Ford was going to lay off its white-collar employees to reduce the company’s expenses in order to focus on restructuring the batteries for its electric vehicles.
What did the company say about the decision?
The company’s email, signed by Ford Executive Chairman Bill Ford and Chief Executive Officer Jim Farley, states that Ford is making changes to its operations and re-building resources. A spokesperson of the company has informed that this decision will be effective from September 1.
It has been said in this email that, to create the future that the company has done for more than a century, almost every aspect of it needs to be changed. Farley pointed out that the company has a large workforce and lacks the expertise needed for electric vehicles. He also said that the company aims to reduce the company’s cost expenses by $ 3 billion by the year 2026.
What is the company’s goal?
Ford, like other automakers, is spending about $50 billion in funding for EV development by 2026 to bridge the car sales gap against electric car giant Tesla.
Farley at the beginning of the year split Ford into two separate divisions, to develop electric vehicles and advanced technologies, and to manufacture petrol diesel vehicles. He said that the profits from the sale of vehicles from conventional fuel will help the company in building the future of its electric vehicles, so it is very important for that part of the company to keep functioning smoothly.
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