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Ford (F) indicates that workers will begin to be informed of the cuts as of Tuesday and that layoffs will be completed by the end of August. Approximately 2,400 of the jobs lost are in North America and 1,500 of them were eliminated through a voluntary buyout offer.
The decision aims to reduce bureaucracy within the company and smooth the management structure, in addition to its desire to reduce costs, according to a letter to employees Monday from Executive Director Jim Hackett.
Ford has made cuts in recent months as part of a massive restructuring that is expected to cost thousands of jobs around the world. Last year, the company was committed to spending $ 11 billion to restructure its business, hoping to boost sales abroad and modernize its fleet of vehicles. focusing more on electric and autonomous driving technologies.
But Ford has been late in giving details on how it will spend the $ 11 billion and on the jobs that could be removed as part of the corporate restructuring. He announced the closure of three factories in Russia, one in Europe and one in Brazil. But he said the measures announced so far represent only about $ 1 billion of the $ 11 billion restructuring planned.
The automotive industry is under pressure to prepare for the future. Major manufacturers must all engage in new technologies and prepare for a world full of autonomous cars and customers who prefer to buy attractions rather than cars themselves. They also face competition from technology companies also interested in the market, such as You're here (TSLA) and Alphabet (ABGENFND) Waymo.
Ford is also facing global challenges. The domestic unit is the most important part of the company and Ford announced last quarter that its sales and profits had increased in North America. But he had difficulties overseas, which led to a major restructuring. Last year, he recorded losses in South America, Asia and Europe, while he was earning money in North America and thanks to his financial branch.
In March, the company had announced the removal of about 5,000 jobs in Germany as part of a program of "voluntary separation". He also said that he would remove a number of jobs in the UK, but did not provide any additional information on those positions at that time.
Ford is also looking to build new alliances when restructuring its business. In collaboration with Volkwagen, he recently announced a $ 500 million investment in Rivian, which plans to launch an electric truck next year.
Other major automakers are also looking to the future. GM, for example, has invested millions of dollars in setting up a separate unit called Cruise dedicated to autonomous cars. GM also sold stakes in Softbank and Honda. Ford said it was also considering investing from outside in its electric and autonomous car unit.
– Vanessa Yurkevich from CNN contributed to this report
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