If there's one piece of news you never like to hear in the automotive industry, regardless of the manufacturer, it's the announcement of job cuts. Unfortunately, that's what's happening at Ford as the company said this week it plans to eliminate 3,000 jobs worldwide.
It was all detailed in an email sent to employees yesterday and obtained by Automotive News.
The cuts will affect staff in the United States, Canada and India. In all, 2,000 employees of Ford itself will be affected, with the remaining 1,000 positions being cut at Ford-related agencies, Ford CEO Jim Farley and Executive Chairman Bill Ford said in the letter. A company spokesperson confirmed to Automotive News the veracity of the email.
“Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” Farley and Executive Chairman Bill Ford wrote in a memo to employees Monday. “This is a difficult and emotional time. The people leaving the company this week are friends and coworkers and we want to thank them for all they have contributed.”
- Jim Farley and Bill Ford, in email sent to Ford employees
The cuts will affect a variety of positions and job types, including purchasing, and will impact both the Ford Blue and Model e divisions.
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The company has told employees that in addition to cutting jobs, it will reorganize and streamline functions within its organization.
"This is a difficult and emotional time. The people leaving the company this week are friends and colleagues and we want to thank them for all they have contributed to Ford. We have a duty to support those affected, and we will do so by offering not only benefits, but also significant assistance in finding new career opportunities," the co-signed email said.
The Bloomberg website reported in July that Ford was anticipating the elimination of some 8,000 positions in the near future. So today's decision comes as no surprise.
Last month, Jim Farley reiterated that Ford had too many employees during the company's second quarter earnings call.
Let's hope everyone affected can find another job soon.
Ford shares fell 4.9 percent to US$15.10 in mid-day trading Monday, while most major stock indexes were down.