Ford is reportedly looking to cut as many as 8,000 jobs in the coming weeks at its Ford Blue internal combustion engine vehicle unit to boost profits necessary to fund its EV push.
Bloomberg cites unnamed sources familiar with the plan as saying that the layoffs will come in the newly created Ford Blue division as well as other salaried operations throughout the company. The insiders said the plan has not been yet finalized and details could still change.
The job cuts are expected to come among Ford's salaried employees in a variety of operational functions and are likely to begin this summer, the sources added. Ford has about 31,000 salaried workers in the United States, where most of the cuts are expected.
The move is likely part of Ford Motor Company CEO Jim Farley's plan to cut $3 billion in costs by 2026, as he previously said he wants to transform Ford Blue into "the profit and cash engine for the entire enterprise."
Ford Blue was created in March alongside the Model e unit, which deals exclusively with electric vehicles and connected technologies.
The automaker declined to comment on possible job cuts, noting that it's focused on reshaping the organization to capitalize on electric vehicle growth.
"As part of this, we have laid out clear targets to lower our cost structure to ensure we are lean and fully competitive with the best in the industry."
Ford Chief Communications Officer Mark Truby in a statement to Bloomberg
Farley has said in the past that Ford has too many employees and reducing the headcount is key to boosting profits, which have been consumed by electric vehicle products like the Mustang Mach-E and F-150 Lightning amid rising commodity and warranty costs.
"We have too many people. This management team firmly believes that our ICE and BEV portfolios are under-earning."
In March, Ford CEO boosted EV spending to $50 billion and laid out a plant to manufacture 2 million battery-electric vehicles a year by 2026, after selling just 27,140 EVs in the US last year. In June, Ford's EV sales increased 77% from a year earlier fueled by the introduction of the new F-150 Lightning pickup truck, of which more than 1,800 units were sold.
