Ford plans to cut several thousand salaried jobs, people familiar with the matter say. The cuts are tied to auto maker’s goal of eliminating $3 billion in annual costs by 2026.
The plans have yet to be completed and could change, the people said.The potential layoffs are tied to a goal recently set by Chief Executive Jim Farley to achieve a 10% pretax profit margin by 2026, up from 7.3% last year, the people said. Mr. FarleyBloomberg News reported earlier Wednesday that Ford is preparing to cut up to 8,000 jobs.Mr. Farley has said Ford needs to squeeze costs out of the internal-combustion part of its business, which today generates nearly all of its revenue and profit.
“We have too much investment. We have too much complexity, and we don’t have expertise in transitioning our assets,” Mr. Farley said at a Wolfe Research auto conference in February. He added that workers on the gas-engine side of the business don’t have the skills and digital expertise needed for developing EVs and that retraining them takes too long.
Auto makers globally are spending more than $500 billion through 2026 to develop electric vehicles, according to consulting firm AlixParnters LLP.
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