Ford Motor is cutting nearly 3,000 jobs from its global workforce, as the automaker seeks to reduce costs as part of restructuring efforts under CEO Jim Farley.
A company spokesperson confirmed that Ford began notifying employees about the cuts on Monday. The cuts are for 2,000 salaried positions and 1,000 agency jobs in the US, Canada, and India, Farley and Ford Chair Bill Ford said in a message to employees obtained by CNBC.
“Building this future requires transforming and changing almost all aspects of the way we have worked for more than a century. It requires focus, clarity, and speed. And, as we have As discussed in recent months, this means redeploying resources and addressing our cost structure, which is uncompetitive compared to traditional and new competitors,” the message reads.
Ford’s cost-cutting action is the latest in a series of efforts by companies to reduce spending and workforce amid fears of a possible recession or economic slowdown, with inflation nearing a 40-year high.
The cuts, first reported Monday by Automotive News, come less than a month after Farley told analysts that “we have a lot of people in some places, no doubt about that.”
The cuts are taking place at Ford’s businesses, which it split into two units earlier this year to separate its electric and internal combustion engine businesses. Ford spokesperson T.R. Reid told CNBC, that there are opportunities to be more efficient and more effective in all business units and all the functions that support them.
Ford employs approximately 31,000 salaried employees in North America. As of the end of last year, Ford had 186,769 employees globally, of which 90,873, or 48.7%, were in the U.S. employees based in
Under Farley, who became CEO in October 2020, Ford is undergoing a massive transformation a company called Ford+, which includes plans to cut $3 billion in structural costs by 2026, while increasing its electric and commercial vehicle businesses. Billions have been invested to expand.
Ford’s stock fell nearly 5% to $15.10 per share in afternoon trading on Monday. Shares are down about 27% in 2022.