Laying off more than one-third of the workforce could be part of the worldwide restructuring process devised by Blue Oval
The latest report from Bloomberg indicates that Ford could layoff as much as 25,000 salaried employees in its overseas plants. It stays purely as speculations right now but considering the recent acts in the global automobile industry, the rumour could very well become reality.
Bloomberg News referring to Adam Jonas’ prediction, who is an analyst at Morgan Stanley. It has been said that the majority of the layoff will happen in the European continent while affecting jobs in other developed countries like United States. The large section of the restructuring will be focussed on the Old Continent where Ford is valued at negative 7 billion USD.
Besides Europe, Ford will concentrate on North America by making important changes for a sustained future and that could involve laying off workers. The report further pointed out a Ford spokesman saying the brand’s salaried workforce was already intimated of losing jobs due to unspecific reasons by mid next year.
The American auto major currently has 70,000 salaried workers and if a job cut of 25,000 comes into effect, more than one third of the total workforce will be terminated. Ford has lately been ditching its sedan lineup in favour of expanding its SUV and crossover portfolio.
Moreover, the operations will be further streamlined and number of platforms reduced to keep the production costs down. The rumours of the massive layoff comes right on the back of fellow American brand General Motors announcing 15 percent of its workforce including one fourth in executive positions will be given a goodbye.
Moreover, five plants across the globe will be shut down and buyouts to 18,000 workers are offered despite posting a strong 2.5 billion USD profit in Q3 2018. Ford blamed US President Donald Trump’s trade war for losing about one billion USD profit a couple of months ago.
The Blue Oval is partnering Volkswagen for commercial vehicles and other initiatives as well. The transition towards battery-powered vehicles is also enabling automakers to take drastic steps. We could be seeing big changes in the automotive landscape in the not-so-distant future with more EVs coming in.