Ford cuts 3,000 jobs to invest in electric vehicles and software

Ford cuts 3,000 jobs to invest in electric vehicles and software

Ford said it would cut 3,000 jobs, mostly in North America and India, as it restructures to catch up with Tesla in the race to develop electric vehicles and software.

Ford Chief Executive Jim Farley has said the automaker doesn’t have enough employees with the skills to deal with an industry that has shifted to electric vehicles and digital services.

“We are eliminating posts, reorganizing and simplifying functions across the company. You will hear more details from leaders in your business this week,” wrote Farley and Ford President Bill Ford in an email.

Like Tesla, Ford wants to generate more revenue through services that rely on digital software and connectivity.

In the email to the team, Farley and Ford said the company’s cost structure “is not competitive with traditional and new competitors.”

Rising prices for batteries, raw materials and transportation are putting additional pressure on Ford and other automakers.

Still, Ford stuck to its 2022 profit forecast despite $3 billion in higher costs due to inflation.

Leaders of the United Auto Workers union, which represents factory workers at Detroit automakers, have expressed concern that electric vehicles will mean fewer manufacturing jobs and more for EV battery and equipment factories, which do not have unions.

Source: CNN Brasil