Ford Motor, the US-based carmaker, has reportedly confirmed that it is laying off about 3,000 employees and contract workers, news agency IANS said on Tuesday. According to the report, the cuts will primarily affect employees in the US, Canada, and India.
The job cuts are effective September 1, a Ford spokesman said. The automaker sent an internal email to employees saying it would begin notifying affected salaried and agency workers this week of the cuts, The Wall Street Journal said.
Ford said that about 2,000 of the targeted cuts will be salaried employees in Dearborn, Michigan, while the remaining 1,000 staff are working in contract positions with outside agencies.
The email, signed by Executive Chairman Bill Ford and Chief Executive Jim Farley said Ford is changing the way it operates and redeploying resources as it embraces new technologies that were not previously core to its operations, such as developing advanced software for its vehicles.
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Recently, Farley has said that Ford has too many employees and that the existing workforce doesn’t have the expertise needed to transition to a portfolio of electric, software-laden vehicles. He has said he aims to cut $3 billion in annual costs by 2026 to reach a 10 per cent pre-tax profit margin by then, up from 7.3 per cent last year.
Several media outlets reported in July that layoffs were coming for white-collar staff as part of a broader restructuring to sharpen the car company’s focus on electric vehicles and the batteries that power them.
Recently, Tata Passenger Electric Mobility Ltd (TPEML), a Tata Motors subsidiary, has acquired Ford India’s manufacturing facility at Sanand in Gujarat for Rs 725.7 crore, as it aims to bolster its passenger vehicle production capacity.
Tata Passenger Electric Mobility now will get the entire land and buildings, vehicle manufacturing plant along with machinery and equipment at the Sanand unit, Tata Motors said in a statement. The deal also includes the transfer of all eligible employees, it added.
Tata Passenger Electric Mobility Ltd and Ford India Pvt Ltd have signed a Unit Transfer Agreement (UTA) for the acquisition of the Sanand-based plant. Tata Motors said with its manufacturing capacity nearing saturation, the acquisition is timely and a win-win for all stakeholders.
Source: abplive
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