Ford car company cuts 3000 jobs amid restructuring efforts

Employees at the struggling car company were told they no longer had jobs, effective immediately. They number in the thousands.

International car manufacturer Ford has sacked 3000 employees, explaining their reasoning in a company-wide internal email. 

Of those, 2000 full-time salaried workers have been laid off while a further 1000 agency personnel were also scrapped.

Those unfortunate workers were from the US, Canada and India.

A company spokesperson confirmed to news.com.au that no Australian jobs had been lost.

Ford Executive Chairman Bill Ford and CEO Jim Farley said it was a “difficult and emotional time” in the jointly written email, seen by TechCrunch.

The job cuts came after a massive restructuring of the North American Ford division in March which many saw as a foreshadowing of lay-offs to come.

In July, reports emerged that up to 8000 jobs were set to get the chop as the CEO said they had too many people in some roles.

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Ford Motor Co CEO Jim Farley. Picture: Ethan Miller/Getty Images/AFP

In the email, the company’s executives wrote: “Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century.

“It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors …

“None of this changes the fact that this is a difficult and emotional time. The people leaving the company this week are friends and co-workers and we want to thank them for all they have contributed to Ford.

“We have a duty to care for and support those affected – and we will live up to this duty – providing not only benefits but significant help to find new career opportunities.”

It’s a little different to what chief executive Mr Farley said two months ago.

In the company’s second-quarter earnings call in July, he said bluntly: “We absolutely have too many people in certain places. No doubt about it. And we have skills that don’t work anymore, and we have jobs that need to change.”

Although 3000 staff seems like a staggering amount to lose, the multinational American company reportedly employs 183,000 people, as at the end of last year.

US auto giant Ford has cut 3000 jobs. Picture: Paul Ellis/AFP

In a statement to news.com.au, a Ford spokesperson said: “As we continue to deliver our Ford+ plan for growth and value creation, we are working to address all aspects of costs to improve our competitiveness and ensure we can fully invest in growth.

“This week, we are making reductions to our salaried workforce in the US and Canada, as well as our Ford Business Services operation in India. These actions affect approximately 2000 salaried Ford employees and about 1000 agency personnel.”

The technology and car sector has been struggling amid tough global market conditions in recent months.

Tesla laid off 200 workers and closed its California offices in June while another EV start-up, Rivian, slashed 6 per cent of its workforce in a cost-cutting measure.