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Ford F-150 Lightning at the 2022 New York Auto Show.
Scott Mlyn | CNBC
DETROIT – Ford Motor is cutting about 3,000 jobs from its global workforce, as the automaker tries to cut costs as part of restructuring efforts under CEO Jim Farley.
Ford began notifying workers of the cuts on Monday, a company spokeswoman confirmed. The cuts are for 2,000 salaried positions and 1,000 agency jobs in the US, Canada and India, Farley and Ford Chair Bill Ford said in a message to employees obtained by CNBC.
“Building this future requires changing and reshaping nearly every aspect of the way we’ve operated for more than a century. It requires focus, clarity and speed. And, as we’ve discussed this In recent months, this has meant redeploying resources and addressing our cost structure, which is uncompetitive compared to traditional and new competitors,” the message stated.
Ford’s cost-cutting actions are the latest in a series of efforts by companies to reduce costs and the number of employees amid fears of a potential recession or softening of the economy, with inflation hovering at a 40-year high.
The cuts, first reported Monday by Automotive News, come less than a month after Farley told analysts that “we definitely have a lot of people in certain areas, there’s no doubt about it.”
The cuts are taking place across Ford’s businesses, which it split into two units earlier this year to separate its electric and internal combustion engine businesses.
“There are opportunities to be more efficient and more effective across all business units and all the functions that support them,” Ford spokesman TR Reid told CNBC.
Ford employs approximately 31,000 salaried workers in North America. At the end of last year, Ford had 186,769 employees worldwide, with 90,873, or 48.7%, of those workers located in the US
Under Farley, who became CEO in October 2020, Ford is undergoing a major company transformation called Ford+ that includes plans to cut $3 billion in structural costs by 2026, while investing billions to expand its electric and commercial vehicle businesses.
“We have worked differently than in the past, reviewing the transfer of work statement of each team connected to our Ford+ plan. We are eliminating work, as well as restructuring and simplifying functions across the business,” read the message to employees.
Ford stock was down about 5% in afternoon trading Monday to $15.10 a share. Shares are down about 27% in 2022.
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