The layoffs are coming across a broad swath
of the company including engineering,
product development, marketing, information
technology, logistics, finance and other areas.
But the company also said it is hiring in some
critical areas including those developing
software and dealing with self-driving and
electric vehicles.
In a memo to employees, CEO Jim Hackett said
the fourth and final wave of the restructuring
started this week, with the majority of U.S. cuts
being finished by May 24.
“To succeed in our competitive industry, and
position Ford to win in a fast-charging future, we
must reduce bureaucracy, empower managers,
speed decision making and focus on the most
valuable work, and cost cuts,” Hackett wrote.
It’s the second set of layoffs recently for Detroit-
area automakers, even though the companies
are making healthy profits. Sales in the U.S.,
where the automakers get most of their
revenue, have fallen slightly but still are strong.
In November, General Motors announced
it would shed up to 14,000 workers as it cut
expenses to prepare for a shift to electric and
autonomous vehicles. The layoffs included
closure of five factories in the U.S. and Canada
and cuts of another 8,000 white-collar workers
worldwide. About 6,000 blue-collar positions
were cut, but most of laid-off factory workers in
the U.S. will be placed at other plants mainly that
build trucks and SUVs.
Both companies have said the cuts are needed
because they face huge capital expenditures to
update current vehicles and develop them for
the future.