Ford’s Australian workforce cut by almost half in just one year

Seven years after Australian production lines were sent offshore, Ford has wiped a whopping volume of its Aussie workforce.

Almost half of Ford’s Australian workforce has been cut in just one year as the manufacturer continues to globally downsize in its shift towards electrification.

An additional 400 employees will be let go across the US brand’s Australian division, representing a cut back of almost 40 per cent compared to the same time last year.

A significant chunk of the company’s 1800 workers would be shown the door, predominantly across vehicle design and engineering teams, a spokesperson told Drive.

“We have begun consultation with our employees and unions on our intention to offer a separation program for approximately 400 of our 1800 employees in Australia,” they said.

“The majority of these will be in product development and design, with a small number in other functions. The changes are part of Ford’s global drive to improve efficiency and transform its operations to meet future needs.”

The change will leave Ford workplaces down about 900 employees compared to last year, with it affecting about 22 per cent of its current Australian workforce.

It came after the company eight months ago cleared out 120 contract positions from 2300 staff.

Seven years after Australian production lines were sent offshore, Ford has wiped a whopping volume of its Aussie workforce. Picture: AFP PHOTO/SAUL LOEB

The workforce was then subject to a “voluntary separation program” earlier this year with about 170 product development and design employees walking off the job.

Despite Aussie assembly lines shutting in 2016, the US’s engineering workforce actually grew in subsequent years.

Ford has however been downsizing global operations in the past year, with it announcing in August that about 3000 jobs would go as it moves towards electrification.

“Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” Ford CEO Jim Farley and Executive Chairman Bill Ford said to staff.

“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.”

Ford’s new-vehicle sales have improved in Australia though, with it up 29 per cent between January and May 2023 compared to the same time last year.

The uptick was largely credited to the Ranger ute with 21,407 sold this year.