Ford cuts 8,000 ICE jobs to focus on electrification


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Innovation does not always come without sacrifice. Ford Motor Company plans to cut up to 8,000 jobs, mostly in the US automaker’s internal combustion division, according to a report released earlier today. The layoffs are said to help Ford move away from ICE production and use the funds to further invest in electric vehicle development.

While Ford Motor Company was one of the oldest automakers to be a bit slow to go fully electrified, it quickly achieved worldwide success on the coattails of its flagship Mustang Mach-E followed by the hugely popular F-150 Lightning.

With several additional EVs in development across all of its marques, Ford is also working to strengthen other elements related to EV transportation. This includes major investments in battery technologies such as solid state and lithium iron phosphate (LFP) cells, as well as Ford Intelligent Backup Power to help keep your home’s lights on.

If the pandemonium surrounding the F-150 Lightning is any indication of an appetite for blue-oval EVs, it’s no surprise that the American automaker is doing everything it can to support EV production and sell as many electrified vehicles as possible as it aims to become an all-electric brand someday. anything.

However, this transition is not without difficult decisions. As the brand transitions into a new era of zero emissions, some of its production units and the people who make them buzz will become obsolete. A bittersweet sign of the electric vehicle revolution is at Ford today as the company reportedly braces for massive job cuts to lean even more on electrified innovation.

Source: Ford Motor Co.

Ford plans to cut 8,000 jobs to make room for electric vehicles

This became known during a live broadcast on bloomberg TV Today. According to the report, the cuts will take place in the newly created Ford Blue division, which specializes in internal combustion engine vehicles, separate from its e division, which focuses entirely on electric vehicles.

The video shows Ford CEO Jim Farley has been saying for months that the automaker has too many employees. It also says 8,000 job cuts will affect Ford employees, 31,000 of whom currently work for the automaker in the United States alone, where most if not all of these layoffs are expected to occur.

Both internal combustion and EV models for Ford are currently unprofitable due to supply chain issues, hence the need to reduce load to maximize future profits. Job cuts are expected at Ford in the coming weeks, though the automaker has yet to confirm any of those details. Here is Bloomberg’s video:

Electrek’s view

While it’s encouraging to hear that a major automaker like Ford is moving further and further away from dirty combustion-engine vehicles and moving closer to full electrification, there are also bitter losses that cannot be ignored. The payoff in this case is job security for up to 8,000 Ford employees, which is never good news, no matter what company you’re talking about.

We hope that Ford will provide adequate severance pay to those unfortunate Ford Blue employees whose jobs are becoming less important. This payback also appears to be the result of ongoing supply chain delays around the world, including Ford, whose F-150 Lightning could easily become the best-selling electric truck of all time.

However, this point of profitability is still far away. This EV alone could end up helping the automaker bail it out as it struggles to profit from its current EV margin. Then we’ll wait to hear from Ford directly and see what the company has to say about itself going forward. Hopefully, in the future, the company will be able to hire some of these people back into the e-division.

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