The American multinational automobile manufacturer Ford Motor has recently announced that a total of 3,000 salaried employees and those on contract jobs will be laid off going forward.
Most of the firing pool will be from India and North America, the company said.
The lay-off will be done at par with the automaker’s provision to restructure its services and develop software-driven electric vehicles, just like competitor Tesla Inc.
The development on Aug 22 came months after the Michigan-headquartered automaker exited the Indian market.
Ford to Fire 3,000 Employees, Mostly From India & North America
As mentioned above, in Sept last year, Ford made a sudden exit from the Indian markets, giving rise to a havoc in the domestic auto industry and leaving an air of confusion and chaos not only amid customers of the carmaker but also among various auto-dealer groups.
Now, the automaker has announced to fire 3,000 people from various salaried and contract roles, majorly from India and North America, in line with its restructuring plans for development of a software-led electric vehicles fleet.
“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,” noted the auto giant’s Chairman Bill Ford in an email.
The company’s CEO Jim Farley has time and again stated that the automaker is flushed with an excess of work pool, adding that the percentage of with skills to make a shift from auto industry to the electric vehicles and digital services are lesser than required.
Farley and Ford, in an email sent to staff on Monday added that the company’s cost structure is uncompetitive, compared to traditional as well as new competitors.
New competitors include Elon Musk’s Tesla Inc, whose pre-tax profit margins in the year has surpassed Ford’s figures.
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