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Ford Motor Co (NYSE: F) on Monday said it will cut 3,000 salaried and contract jobs, mainly in North America and India, in an effort to lower its costs and restructuring efforts to catch up with Tesla Inc (NASDAQ: TSLA).
Jim Farley, the CEO of the Michigan-based automobile giant, has been saying for months that he believed Ford had too many people and that not enough of its workforce had the skills required as the auto industry shifts to electric vehicles and digital services.
"We are eliminating work, as well as reorganizing and simplifying functions throughout the business. You will hear more specifics from the leaders of your area of the business later this week," Farley and Ford Chairman Bill Ford wrote in an internal email.
Like other traditional carmakers, Ford has a workforce essentially hired for internal combustion engines. However, Farley has mapped out a strategy for Ford to develop a broad lineup of electric vehicles, digital software and connectivity to compete with Tesla.
In Monday's email to staff, Farley and Ford said the company's cost structure "is uncompetitive versus traditional and new competitors."
Ford has begun separating its operations into electric, the combustion engine and commercial vehicle operations.
Although Farley in July said "cost reduction will happen" in the combustion operations, the carmaker on Monday said that the staff cuts would affect all parts of the company.
Picture Credit: Bloomberg
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