Ford F-150 Lightning at the 2022 New York Auto Show.
Scott Mlyn | CNBC
ADVICE – Ford Motor is cutting about 3,000 jobs from its global workforce, as the automaker tries to reduce costs as part of a restructuring effort under Chief Executive Officer Jim Farley.
Ford began notifying workers of the cuts on Monday, a company spokesman confirmed. The cuts are for 2,000 salaried positions and 1,000 dealership jobs in the US, Canada and India, Farley and Ford President Bill Ford said in a message to employees obtained by CNBC.
“Building this future requires changing and reshaping virtually all aspects of the way we’ve operated for more than a century. It requires focus, clarity, and speed. And, As we’ve discussed in recent months, that means re-using resources and addressing our cost structure, which is not competitive with traditional and new competitors.” , notice writes.
Ford’s cost-cutting actions are the latest in a series of efforts by the companies to reduce costs and number of employees amid fears of a potential recession or recession, with inflation hovering near a 40-year high.
Cuts, first reported Monday of Automotive Newscomes less than a month after Farley told analysts that “we have absolutely too many people in certain places, no doubt about that.”
The cuts are happening across Ford’s business areas, this split into two units earlier this year to separate the electric and internal combustion engine businesses.
“There are opportunities to become more and more efficient and effective in all business units and all the functions that support them,” Ford spokesman TR Reid told CNBC.
Ford employs about 31,000 salaried workers in North America. As of the end of last year, Ford had 186,769 employees globally, with 90,873, or 48.7%, of whom worked in the United States.
Under Farley, who became CEO in October 2020, Ford is going through a major corporate transformation called Ford+ which includes plans $3 billion in structural cost cuts by 2026, while investing billions of dollars to expand its electric and commercial vehicle businesses.
“We’ve been working differently than before, checking each team’s changed work statement as it relates to our Ford+ plan. We’re removing work, as well as reorganizing and reorganizing. simplify functions throughout the enterprise”, message sent to employees.
Shares of Ford fell about 5% in Monday afternoon trading to $15.10 a share. The stock is down about 27% in 2022.