US Ford Cuts Jobs Again... Deficit Grows Amid Electric Vehicle Transition

Ford CEO "Large Investment in Electric Vehicles... Much to Do to Meet Costs"

American automaker Ford is once again pushing for layoffs. As losses grow due to massive spending on the transition to electric vehicles, the company is undertaking strong cost-cutting measures including workforce restructuring.

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On the 22nd (local time), the Wall Street Journal (WSJ), citing sources, reported that Ford is expected to announce layoffs as early as next week.

The layoffs will mostly target workers in the United States. Although the exact scale of the layoffs has not been disclosed, it is reported that not only the internal combustion engine gas engine division but also the electric vehicle software division will be included in the layoffs.

A Ford spokesperson said there is no new announcement yet but explained, "Our ongoing management efforts include maintaining cost competitiveness to achieve future business plans as well as global workforce redeployment."

Previously, Ford laid off 3,000 employees in August last year and cut 3,800 employees in Europe earlier this year. As the company pours massive costs into the electric vehicle transition and runs low on funds, it continues cost-cutting and management efficiency measures including workforce reductions. Ford plans to invest $50 billion in the electric vehicle transition by 2026.

Jim Farley, Ford's Chief Executive Officer (CEO), said, "We have invested billions of dollars in transitioning our vehicle lineup to electric vehicles," adding, "We have more work to do than competitors to align costs."

Ford's management reports that it spends $7 billion to $8 billion more annually than competitors on supply chain management and vehicle warranty costs. After posting a $2 billion loss last year, the company has also lowered its annual performance forecast for this year. In particular, the electric vehicle business division, which Ford is focusing on, is expected to incur a $3 billion loss this year.

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