Automaker Ford gears up for fresh job cut round amid shift to EVs

SAN FRANCISCO : US automaker Ford is preparing to cut more jobs as it directs more investments towards building electric vehicles (EVs).

The fresh layoffs could be announced as soon as next week, according to The Wall Street Journal.

The company laid off about 3,000 employees in August last year.

Ford CEO Jim Farley has said that the automaker has more work to do than its competitors to get costs in line.

"Ford Motor (NYSE:F) is preparing to initiate another round of layoffs in the coming weeks, according to people familiar with the matter, the latest in a broader effort by the automaker to streamline operations and reduce costs," the report mentioned.

Last month, Ford Motor reached an agreement with Elon Musk-run Tesla (NASDAQ:TSLA) that will provide Ford electric vehicle customers access to more than 12,000 Tesla Superchargers across the US and Canada, doubling the number of fast-chargers available to Ford EV customers starting spring 2024.

In 2025, Ford will offer next-generation electric vehicles with the North American Charging Standard (NACS) connector built-in, eliminating the need for an adapter to access Tesla Superchargers.

In August 2022, Ford laid off about 3,000 employees and contract workers, with the cuts primarily affecting staff in the US, Canada, and India.

"Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century. It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors," the company had said in a memo.

Overall, the company had reduced salaried workforce by about 2,000, as well as reducing agency personnel by about 1,000.