Ford cuts 8,000 ICE jobs to focus on electrification

Forward innovation is not always without sacrifice. According to a report released earlier today, Ford Motor Company plans to cut up to 8,000 jobs, mostly positions in the US automaker’s internal combustion division. The layoffs would help wean Ford off ICE production and use those funds to invest more in electric vehicle development.

Although Ford Motor Company was one of the somewhat slow legacy automakers to fully embrace electrification, it found rapid worldwide success with its flagship Mustang Mach-E, which was followed by the very popular F-150 Lightning.

With several additional EVs in its brands’ pipeline, Ford has also worked to bolster other elements associated with EV transportation. This includes major investments in battery technology like solid-state and lithium iron phosphate (LFP) cells, as well as Ford’s Smart Backup Power to help keep your home lights on.

If the pandemonium surrounding the F-150 Lightning is any indication of the appetite for electric vehicles bearing the blue oval, it’s no wonder the US automaker is doing all it can to bolster vehicle production. electric and sell as many electrified vehicles as possible as it works to become an all-electric brand one day.

However, this transition is not without difficult decisions. As the brand transitions into a new zero-emissions era, some of its production units, and the people who keep them humming, will become obsolete. A bittersweet sign of the electric vehicle revolution emerged from Ford today, as the company prepares for massive job cuts to lean even deeper into electrified innovation.

Job cuts at Ford
Source: Ford Motor Co.

Ford plans 8,000 job cuts to make room for more electric vehicles

The news came during a live broadcast on Bloomberg Television today. According to the report, the cuts will take place in Ford’s new blue division, which focuses on internal combustion vehicles as distinct from its fully electric vehicle-focused e division.

The video points out that Ford CEO Jim Farley has been saying for months that the automaker has too many employees. It also says the 8,000 layoffs will be for Ford’s salaried employees – 31,000 of whom are currently employed by the automaker in the United States alone, where most, if not all of those layoffs are expected to take place.

Currently, Ford’s combustion and electric models are unprofitable due to supply chain issues, hence the need to lean in to maximize profits in the future. The job cuts are expected by Ford in the coming weeks, although the automaker has yet to confirm any of those details. Here is the Bloomberg video:

Electrek’s Grasp

While it’s encouraging to hear a major automaker like Ford move 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 employees, which is never good news no matter which company you’re talking about.

We hope that Ford will provide adequate severance pay to unlucky employees working at Ford Blue, whose work becomes less vital. This jobs reckoning also appears to be a replication of continued 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 is still far from this point of profitability. This EV alone could eventually help bail out the automaker as it strives to turn a profit on its current EV margins. Then we’ll wait to hear directly from Ford and see what the company has to say for itself going forward. Hopefully he can hire some of these people in e Division in the future.

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