Shulou(Shulou.com)11/24 Report--

On August 23, Ford Motor Company announced on Monday that it would cut a total of 3000 salaried and contract jobs, mainly in North America and India. The move shows that the company is restructuring to catch up with Tesla in the development of software-driven electric vehicles.

Jim Farley, Ford's chief executive, has been saying for months that he thinks the carmaker has too many employees. And as the industry shifts to electric cars and digital services, Ford doesn't have enough employees with the skills they need.

"We are laying off staff and restructuring and simplifying the functions of the entire business unit," Farley and Bill Ford, Ford chairman, wrote in a joint email to all employees. "you will hear more details from leaders in your business area later this week."

Like other established carmakers, Ford employees are mainly engaged in the production of traditional fuel cars. Looking ahead, Farley has developed a strategy for Ford to develop a range of new electric vehicles. Like Tesla, Ford hopes to generate more revenue by relying on digital software and connected services. Tesla's pre-tax profit margin has surpassed that of Ford this year, and Farley has always been outspoken about the need to cut costs.

"to build such a future, we need to change and reshape all aspects of the way we operate for more than 100 years, which requires focus, clear goals and speed," Ford and Farley wrote in an email. and, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive with traditional and new competitors. "

Rising battery, raw material and transportation prices are putting additional pressure on Ford and other automakers. Still, Ford stuck to its full-year profit forecast, despite an increase in operating costs of $3 billion due to inflation.

Ford has begun to divide its business into electric, internal combustion engine and commercial vehicle divisions. About 2000 salaried jobs and 1000 contract jobs will be affected, and it is not clear the proportion of layoffs in each department. Farley said in July that the internal combustion engine division would cut costs. But Ford said on Monday that the job cuts would affect all parts of the company.

Ford's rival General Motors took action at the end of 2018, cutting 14000 jobs and preparing to accelerate its electric vehicle strategy. Ford, GM and Stellantis's North American operations will face new labour challenges next year as they begin contract negotiations with the United Auto Workers Union (UAW), which represents employees at Detroit automakers'US plants.

UAW leaders worry that electric cars will mean fewer manufacturing jobs and more jobs will be dispersed to non-union battery and electric vehicle hardware factories.

Nor is Ford the car company that has laid off staff in recent weeks. Rivian announced 6% layoffs, Ford-backed start-up Argo AI laid off about 150 people, and Tesla fired employees who helped train Autopilot AI systems.

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