Ford to Slash 8,000 Jobs to Fund Biden's Electric Vehicle Push
Auto giant planning pass layoffs as company shifts to EV projects
American automaker Ford is planning to lay off 8,000 of its workers in an effort to fund Democrat Joe Biden's push for electric vehicle (EV) production.
According to a Wednesday report from Bloomberg, Ford is planning to slash its workforce to help the company fund its "green" EV projects.
The cuts, though still pending, are expected to be implemented in the coming weeks.
The layoffs will affect salaried workers, as well as the automaker’s new Ford Blue unit, Bloomberg reported.
Ford Blue was created in March to oversee internal combustion engine operations.
“To deliver our Ford+ transformation and lead this exciting and disruptive new era of electric and connected vehicles, we remain focused on reshaping our work and modernizing our organization across all automotive business units and across the company,” Ford spokesman T.R. Reid said.
"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.”
While Ford did not comment on the reported upcoming layoffs, the company has a meeting scheduled for Thursday where it’s expected to update shareholders on the future of its EV production.
The company wants to reach 600,000 EVs produced by next year and two million EVs by 2026.
The Bloomberg report flies in the face of a June announcement from Michigan Democratic Governor Gretchen Whitmer that celebrated Ford’s $2 billion investment to create over 3,000 jobs in the state related to its EV production.
"We are thrilled that Ford is advancing its long legacy in Michigan by investing $2 billion to create 3,200 good-paying UAW jobs,” the governor said on June 2.
"Today’s announcement marks another historic economic win for the state in recent months and will help our economy grow even stronger.
"I am proud that we came together to deliver economic development legislation that has helped us land huge projects, creating thousands of jobs,” Whitmer added.
"With this announcement, Michigan has added nearly 25,000 auto jobs since I took office and we continue to lead the future of mobility and electrification.”
According to the governor’s office, Ford’s multi-billion dollar investment “ensures future opportunity for EV manufacturing growth, while securing internal combustion engine portfolio in Michigan.”
That promise appears to be at odds with Ford’s reported plan to cut jobs, but it remains unclear how many Michigan jobs will be affected by Ford’s reported upcoming layoffs.
In March, Ford admitted that its EV project would not be profitable until at least 2025 when its next-generation models come out.
Ford CEO Jim Farley also said at a conference in February that EV portfolios were “under-earning,” and that the company had “too many people.”