Ford Motor is reportedly making preparations for another wave of layoffs targeting its salaried workforce in the United States. The Wall Street Journal, citing sources familiar with the matter, revealed this development on Thursday. Last year in March, the company had disclosed its plans to reduce structural costs by up to $3 billion within its gas-powered vehicle division. Subsequently, in August, Ford had announced a total of 3,000 job cuts for salaried and contract positions, primarily in North America and India.
The latest report from the Wall Street Journal indicates that the impending round of layoffs will impact employees in Ford’s gas, electric-vehicle, and software divisions. However, the exact number of job cuts remains undisclosed. Reuters sought comments from Ford in response to the report, but the automaker did not immediately provide any official statement.
This move by Ford to streamline its operations follows the examples set by other automotive companies, such as Stellantis NV and General Motors, who have recently offered employee buyouts. Despite facing inflationary challenges, automakers have managed to offset some of the effects through price increases and robust demand for new vehicles. Nonetheless, the escalating costs of raw materials continue to pose a significant obstacle.
Additionally, automakers have been striving to manage expenses associated with their electric vehicle businesses, which are expensive to run. This focus aligns with the industry’s efforts to integrate environmentally friendly vehicles into the mainstream market as they gain popularity.
