Innovation forward doesn’t always come without sacrifice. According to a report earlier today, Ford Motor Company plans to cut up to 8,000 jobs, mostly related to positions in the American automaker’s internal combustion engine division. The layoffs are intended to help Ford halt ICE production and use those funds to further invest in electric vehicle development.
Though Ford Motor Company was one of the legacy automakers a little too slow to embrace electrification, it has found rapid success around the globe with the jacketed tails of its flagship Mustang Mach-E, which was followed by the wildly popular F-150 Lightning.
With several additional EVs in its brands’ pipeline, Ford has also been working to strengthen other elements related to EV transportation. This includes major investments in battery technology such as solid state and lithium iron phosphate (LFP) cells, as well as Ford Intelligent Backup Power to keep your home’s lights on.
If the F-150 Lightning chaos betrays the blue oval’s appetite for electric vehicles, it’s no wonder the American automaker is doing everything in its power to ramp up EV production and sell as many electrified vehicles as possible one day an all-electric brand.
This transition is not without tough decisions, however. As the brand moves into a new zero-emissions era, some of its manufacturing units and the people who make them buzz are becoming obsolete. A bittersweet sign of the EV revolution has emanated from Ford today as the company is reportedly preparing for massive job cuts to focus even more on electrified innovations.
Source: Ford Motor Co.
Ford plans to cut 8,000 jobs to make room for more electric vehicles
The news was released today during a live broadcast on Bloomberg Television. The cuts will reportedly take place in Ford’s newly formed Blue Division, which focuses on internal combustion engine vehicles, separate from the e-Division, which focuses solely on electric vehicles.
The video points out that Ford boss Jim Farley has been saying for months that the automaker has too many employees. It also said the 8,000 job cuts will affect salaried Ford employees – 31,000 of whom are currently employed by the automaker in the United States alone, where most if not all of these layoffs are expected.
Currently, both combustion and EV models are unprofitable for Ford due to supply chain issues, so a reduction is needed to maximize profits in the future. The job cuts are expected from Ford in the coming weeks, although the automaker has not yet confirmed any of these details. Here is the Bloomberg video:
Electrek’s take
While it’s heartening to hear that a major automaker like Ford is moving further away from dirty combustion vehicles and closer to full electrification, there’s a bitter toll that can’t be ignored. The cost in this case is job security for up to 8,000 Ford workers, which is never welcome news no matter what company you’re talking about.
We hope that Ford will give fair compensation to the unfortunate Ford Blue employees whose work is becoming less and less important. That job payoff also appears to be an aftershock of ongoing supply chain delays around the world, including Ford, whose F-150 Lightning could easily become the best-selling electric truck of all time.
However, it’s still a long way from reaching that point of profitability. That EV alone may have to help save the automaker as it struggles to turn a profit on its current EV margins. Next, we’ll wait to hear directly from Ford and see what the company has to say for itself. Hopefully in the future it can hire some of these people back into the e-Division.
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