Ford CEO hints at job cuts amid electric vehicle production expansion

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  • Ford’s CEO has hinted that the auto giant may cut jobs in order to increase production of electric vehicles, according to Bloomberg.
  • “We have absolutely too many people in some places,” Jim Farley said on a conference call.
  • Farley aims to save $3 billion as part of a transformation to reach 2 million electric vehicles by 2026.

Ford CEO Jim Farley has hinted that the automaker plans to move forward with reported job cuts as it seeks to increase production of electric vehicles.

“We have absolutely overcrowded in some places, there’s no doubt about that,” Farley told reporters during an earnings call on Wednesday, reported Bloomberg. “We have skills that don’t work anymore and we have jobs that need to change,” Farley said, responding to a question posed by a Morgan Stanley analyst, according to Bloomberg.

The comments double down on a similar concession Farley made at a Wolfe Research automotive conference in February, previously reported by Insider. His words come as the automaker could cut up to 8,000 jobs to help the company switch from fossil fuels to electric cars.

Bloomberg reported on July 20, citing unnamed sources with knowledge of the matter, that the 8,000 positions could come from salaried positions across the company, but primarily from its new Blue unit, responsible for internal combustion engine vehicles.

Details of the plans had not been finalized at the time, Bloomberg reported.

The 118-year-old auto giant is in a race, along with other legacy automakers like GM, to match Tesla in the battle to dominate the still nascent, but growing, electric vehicle market.

Farley plans to save up to $3 billion in a sweeping transformation, aiming to increase Ford’s electric vehicle production to two million vehicles by 2026, according to Bloomberg.

In March, the company spun off its EV division, named Model E, from its internal combustion division, renamed Ford Blue, and pledged to invest up to $50 billion to electrify its fleet.

“Ford is way too complex,” Farley said on the call, according to Bloomberg.

“We anticipate much less complexity in our Blue business and this is a theme that will run through Blue for years to come.”

Farley declined to specify how many roles might be dropped when asked during the earnings call. Ford employs 88,000 people in the United States, including 57,000 hourly workers, according to its corporate website.

A Ford spokesperson said the company does not comment on speculation when contacted by Insider.

“To deliver our Ford+ transformation and lead this exciting and disruptive new era of electric and connected vehicles, we are focused on redesigning our work and modernizing our organization across all automotive business units and across the company.” , the company said.

Ford’s half-year profit more than tripled from the same period last year, reaching $3.7 billion before adjustments for taxes and interest.

The increase was fueled in part by strong demand for its Mustang Mach-E, F-150 Lightning and E-Transit electric vehicles, the company said in the revenue report.

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