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Ford preparing for new round of layoffs for US salaried workers - WSJ

Published 06/22/2023, 05:33 PM
Updated 06/22/2023, 06:15 PM
© Reuters. A Ford logo is seen during the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado
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(Reuters) - Ford Motor (NYSE:F) is preparing for a new round of layoffs for its salaried workers in the United States, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The company in March last year announced plans to reduce structural costs of up to $3 billion at its gas-powered vehicle unit. In August, Ford said it would cut a total of 3,000 salaried and contract jobs, mostly in North America and India.

According to the WSJ report, the new round of layoffs is expected to affect employees at the Detroit automaker's gas, electric-vehicle and software divisions, but the number of cuts could not be learned.

Ford did not immediately respond to a Reuters request for comment.

The automaker's latest effort to streamline its operations comes after peers Stellantis NV and General Motors (NYSE:GM) said they were offering employee buyouts.

© Reuters. A Ford logo is seen during the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado

Price hikes and strong demand for new vehicles have helped automakers counter some inflationary headwinds, though higher costs of raw material remain a challenge.

Automakers have also been trying to control costs at their expensive-to-run electric vehicle businesses, a focus area for the industry as environmental-friendly vehicles drift into the mainstream.

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