[ad_1]
The American auto giant, Ford, has just announced that it will cut 7,000 jobs out of its payroll.
The layoffs will all be white-collar positions within the company – such as product development, marketing, information technology, logistics and other jobs within the company's bureaucracy.
In a statement, Ford CEO Jim Hackett said the initiative was aimed at speeding up decision-making and maintaining the company's competitiveness in the auto industry.
This change should save the company some $ 600 million. It is entering into a longer cost-cutting process over two years, as sales slow down around the world.
Ford turns to emerging technologies
The launches announced by Ford are part of the company's new focus on automation and emerging technologies. The company is actually trying to remove the "dead weight" present in its bureaucracy. He hopes to flatten the chain of command, allowing for faster decision-making.
However, cost reduction on the management side is complementary to Ford's new technology initiative. The company recently announced its $ 11 billion investment in electric and autonomous driving technology.
His concerted effort to be at the forefront of technological innovation does not stop there.
In May 2018, it was announced that Ford was meeting with other major automakers to form a "coalition of chain chains". Called Mobility Open Blockchain Initiative, the project aims to create common standards and APIs for vehicles to enable payments and data. sharing between them.
Ford is trying to cultivate a 'digital mobility ecosystem', from carpooling to autonomous vehicles to every new product line. In short, the company seeks to connect all its vehicles within a single network. Society inevitably considers that blockchain, autonomous vehicles and other emerging technologies are at the heart of the paradigm shift it wants to lead.
Ford inevitably sees blockchain, autonomous vehicles and other emerging technologies as the central element of a paradigm shift it wants to lead. Click to tweet
The human cost of automation
Ford has aggressively embraced emerging technologies to stay competitive. However, the auto industry believes that it can not modernize its production chain without also flattening its management structure. Therefore, we should consider these layoffs as a consequence of the company's new mission.
Emerging technologies such as block chains and autonomous vehicles will likely open a new path for Ford. However, they will not come smoothly for employees.
Do you believe that Ford's shots are part of its modernization efforts, both on the production line and within the management? Let us know your thoughts below.
Images courtesy of Shutterstock.
[ad_2]
Source link