US-based Fotor Motor Co. has been said to be trying to boost profits to fund its electric car operations and preparing to lay off up to 8,000 employees in the coming weeks.
According to Bloomberg’s report, the layoffs will be made at Ford Blue’s unit, which is responsible for the production of conventional internal combustion engine cars.
It was indicated that the plan has not yet been finalized and details may change.
$3 BILLION COST REDUCTION TARGET
The move is a key part of Ford CEO Jim Farley’s $3 billion cost-cutting plan by 2026. Farley, Blue Ford “for the benefit and cash engine of the whole company” He said he wanted to convert.
Ford’s CEO took a drastic step in March, separating the departments responsible for producing electric and internal combustion cars. Model e was created for electric car operations and Ford Blue was created for conventional car production.
DEVELOPMENTS CAN START THIS SUMMER
It was stated that the layoffs should be made among salaried Ford employees in various operational roles. The layoffs could come in stages, but the plan looks likely to start this summer.
Ford employs about 31,000 workers in the United States, where most layoffs are expected.
Although Ford did not comment on the possible layoffs, it said it was focused on revamping the company to capitalize on the growth of electric cars. The company’s director of communications, Mark Truby, said in a statement that they have set clear goals to reduce costs in order to compete with the best in the industry.
“THE KEY TO PROFIT IS REDUCTION OF STAFF”
Farley said downsizing was key to boosting profits that were evaporating on the electric Mustang Mach-E and other electric models due to rising commodity and warranty costs.
Ford’s CEO told the Wolfe Research automotive conference in February, “We have a lot of staff” used the words.
Ford shares have fallen 39% through Tuesday this year amid inflation fears and supply chain issues that have plagued the auto industry.
Farley increased spending on electric cars to $50 billion in March and has set a goal of producing 2 million electric cars a year by 2026, after selling 27,140 units in the United States last year .
LOSS OF $3.1 BILLION IN THE FIRST QUARTER
Sales of Ford’s electric cars rose 76.6% last month from a year earlier as the F-150 Lightning electric pickup truck was just introduced.
Ford lost $3.1 billion in the first quarter of 2022, Car and Driver reported. But much of that was due to a sharp drop in its stake in electric car startup Rivian. However, operating profit fell to $2.3 billion. In the first quarter of 2021, this figure was $3.9 billion.
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