According to a report, Ford Motor Co. is getting ready to cut around 8,000 jobs in the coming week to help fund its push into electric vehicles. The sources familiar with the plan, said the job cuts will come mainly in the newly developed Ford Blue unit that produces gasoline powered vehicles, and several other salaried operations throughout the company.
The plan has not yet been finalized, so the details might change. The news comes as Michigan is giving the company a 100 million dollars tax-funded incentive package in June 2022 as part of a plan to create new jobs in the state.
Jim Farley, chief executive officer of Ford, said he is planning to cut 3 billion dollars in costs by 2026 and that he wants to convert Ford Blue into the cash and profit engine for the entire company. In March 2022, the CEO of Ford restructured the automobile company to create two businesses, including the Model e unit to develop electric vehicles and Ford Blue to focus on internal combustion engine vehicles like the Mustang, the Bronco SUV, and F-150 pickup.
The report shows that the job cuts are expected to hit a variety of operational functions among the white-collar workforce at Ford, and they might come in different phases, and are expected to start this summer.