On Wednesday, an unnamed source told Bloomberg that Ford intended to eliminate up to 8000 positions from its Ford Blue subsidiary.

The company's ICE vehicles are made by Ford Blue, and Ford is aiming to save $3 billion in operational costs from its gas-powered sector to put more money into EV research and development.

The proposal has not yet been finalized, according to a Ford spokeswoman saying that the firm would rather not comment.


Ford reported on Wednesday that up to 8000 Ford employees may lose their jobs. The action could be a part of a strategy to reduce the company's gasoline-powered business activities' operational costs by $3 billion in order to increase profit and devote more money to Ford's electric vehicle projects.

The Ford Blue business, which manages the production of Ford's internal combustion-engine vehicles, is expected to experience the cuts, which will allegedly mostly affect salaried employment. Currently, Ford employs over 31,000 people on a salary.

The Ford+ plan, a radical reorganization of Ford announced in March by CEO Jim Farley, including the creation of the Ford Blue business and the Model e division, which manages electric vehicles. In line with the strategy, he increased investment on EVs to $50 billion, which he claimed was "based on our core automotive activities" in an interview with SoCal Television.

We need [Ford Blue] to be more profitable to fund this, Farley continued.

Farley previously stated, "We have too many people, we have too much investment, we have too much complexity, and we don't have competence in moving our assets," in reference to Ford's ICE operations in February at a Wolfe Research conference.


Large Losses in the Beginning of 2022

Ford experienced a $3.1 billion loss in the first quarter of 2022, however a large portion of that was due to a steep decrease in the value of its interest in the EV company Rivian. While this was going on, operating profit was down to $2.3 billion from $3.9 billion in the first quarter of 2021.


T.R. Reid, Director of Corporate and Public Policy Communications at Ford, responded to SoCalTelevision's request for comment by providing the information below.

We won't respond to rumors regarding our company. As we've frequently stated, we're redesigning our work and modernizing our organization across all of the automotive business groups as well as the entire company in order to accomplish our Ford+ transformation and lead an exciting and disruptive new era of electric and connected vehicles. To be lean and fully competitive with the finest in the market, we've set clear goals for our cost structure."

As new information becomes available, we will update this breaking news story.

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