Ford slashes 3,000 jobs as it pivots to EVs
STORY: Ford is cutting jobs in order to catch up with Tesla.
The automaker on Monday said 3,000 staff and contract jobs will be eliminated, mostly in North America and India, in a restructuring effort to better compete in the race to develop electric vehicles.
Ford Chief Executive Jim Farley has been saying for months that he believed the company was overstaffed and that not enough of its workforce had the skills required to shift to electric vehicles and digital services.
He and Ford Chairman Bill Ford told employees in a joint email that the company's cost structure "is uncompetitive versus traditional and new competitors."
Rising prices for batteries, raw materials and shipping are putting additional pressure on Ford and other automakers.
Going forward, Farley has mapped out a strategy for Ford to develop a broad lineup of electric vehicles. Like Tesla, Ford wants to generate more revenue through services that depend on digital software and connectivity.
Ford has begun separating its operations into electric, combustion engine and commercial vehicle operations – and said the staff cuts will affect all parts of the company.
Ford, GM and Chrysler owner Stellantis confront a new workforce challenge next year as they begin contract negotiations with the United Auto Workers union, which represents the Detroit automakers' U.S. factory employees.
UAW leaders have expressed concern that electric vehicles will mean fewer manufacturing jobs, and more jobs dispersed to non-union battery and electric-vehicle hardware factories.
