Ford Motor Co said it will cut a total of 3,000 salaried and contract jobs, mostly in North America and India, as it plans to restructure for developing software-driven electric vehicles. It said about 2,000 of the targeted cuts will be salaried jobs, while the remaining 1,000 employees are working in contract positions with outside agencies.
In a joint e-mail, Ford Chief Executive Jim Farley and Ford Chairman Bill Ford said, “We are eliminating work, as well as reorganising and simplifying functions throughout the business. You will hear more specifics from the leaders of your area of the business later this week.”
The job cuts are primarily affecting staff in the US, Canada and India. In the internal email, it will begin notifying affected salaried and agency workers this week of the cuts, according to The Wall Street Journal.
The company’s email, signed by Ford and Farley, said Ford is changing the way it operates and redeploying resources as it embraces new technologies that weren’t previously core to its operations, such as developing advanced software for its vehicles. The job cuts are effective September 1, a spokesman said.
“Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” the internal message said.
Media reports in July had said layoffs were coming for white-collar staff as part of a broader restructuring to sharpen the car company’s focus on electric vehicles and the batteries that power them.
Earlier this year, Farley divided the company into separate divisions, including one to focus on electric vehicles and advanced technologies, and another to handle its traditional internal-combustion-vehicle lines. He has said profits from its line-up of gasoline and diesel-engine vehicles will help fund the transition, but that part of the business must operate more efficiently.
Meanwhile, according to an AP report, furniture retailer Wayfair has also cut about 870 jobs, or 5 per cent of its global workforce, as it plans to reduce operating expenses and realign investment priorities. The company has also reported a 55 per cent jump in sales as families spent heavily to furnish living rooms and other parts of the house, with millions sheltering at home in 2020. Last year, as more people ventured out, sales at Wayfair declined 3.1 per cent.
Companies in India have also been resorting to lay-offs to cut costs, amid financial stress. Edtech unicorn start-up Byju’s recently laid off over 600 employees, including both permanent and contractual. Before Byju’s, new-generation enterprises including Vedantu, Unacademy and Cars24 have also let go of over 5,000 employees in India this year. Ola has laid off about 2,100 employees during January-March this year, followed by Unacademy (over 600), Cars24 (600) and Vedantu (400). This apart, e-commerce firm Meesho has laid off 150 employees, furniture rental start-up Furlenco 200, influencer-led social commerce start-up Trell 300 employees and OkCredit has let go of 40 employees.
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