Ford plans to cut up to 8,000 jobs – Bloomberg News

The Ford logo is seen at the North American International Auto Show in Detroit, Michigan, U.S. January 15, 2019. REUTERS/Brendan McDermid/File Photo

July 20 (Reuters) – Ford Motor Co (FN) is preparing to cut up to 8,000 jobs in the coming weeks in a bid to cut costs and focus more on electric vehicles, Bloomberg News reported on Wednesday, citing people familiar with the matter. .

The cuts are expected in Ford’s salaried workforce, as well as the Ford Blue unit created in March to manage the company’s internal combustion engine operations, Bloomberg reported. The cuts, the details of which are not finalized and could change, could be done in phases and are expected to begin this summer. (https://bloom.bg/3aTY7TW)

A Ford spokesperson said the company was not commenting on the speculation, but had scheduled a conference call Thursday to update investors on its plans to meet annual electric vehicle production targets of 600,000 vehicles by by 2023 and over 2 million by the end of 2026.

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

“As part of this, we have set clear targets to reduce our cost structure to ensure that we are lean and fully competitive with the best in the business,” he added.

In March, Ford increased spending on electric vehicles through 2026 to $50 billion from its previous target of $30 billion, and reorganized its operations into separate units focused on electric vehicles and gasoline vehicles. with Ford Model e and Ford Blue, respectively. Read more

The Dearborn, Michigan-based company also said at the time that its electric vehicle business would not be profitable until next-generation models begin production in 2025.

Ford Chief Executive Jim Farley told a Wolfe Research conference in February that the US automaker’s ability to reduce the operating costs of its internal combustion engine was structural. “We have too many people,” he said.

“This management team strongly believes that our ICE and BEV portfolios are undercompensated,” he added, referring to battery electric vehicles, or BEVs.

Reporting by Yuvraj Malik in Bengaluru; Editing by Devika Syamnath and Richard Chang

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