Ford’s White Collar Workers in US to Face Layoffs, but Why?

What's the reason behind the layoffs?

Ford's white-collar workers in the United States are expected to face layoffs, as claimed by sources familiar with the automaker's business activities.

Ford's White Collar Workers in US To Face Layoffs, But Why?
The blue Ford emblem is seen on a new car at a dealership on September 23, 2022 in Long Beach, California. Ford Motor Co. has reportedly delayed deliveries on some new vehicles due to a supply-chain shortage of the company's iconic blue badges. Eric Thayer/Getty Images

Ford is no longer new to mass terminations ever since it began transitioning to EV manufacturing.

In 2022, the American automotive company also terminated thousands of employees, as well as contract workers in Canada, India, and the U.S.
Now, Ford is planning another mass layoff.

Ford's White Collar Workers in the US to Face Layoffs

According to Car Scoops' latest report, the latest layoff could be a part of the latest Ford+, the automaker's plan for growth and value creation.

Ford's White Collar Workers in US To Face Layoffs, But Why?
The Ford logo is displayed on a new Ford car on the sales lot at a Ford dealership on March 29, 2017 in Colma, California. Ford announced that it is recalling more than 441,000 vehicles in North America at the cost of $295 million to fix problems that might cause engine fires and doors latches to unexpectedly malfunction. ustin Sullivan/Getty Images

Anonymous sources claimed that the American carmaker could terminate white-collar employees before June ends. Hundreds of workers are expected to be affected.

They added that the job cuts would be limited to employees located in North America; could be solely within the U.S.

Ford's latest layoffs are believed to be conducted across Ford Blue and Ford Model E sectors. Ford spokesman T.R. Reid also confirmed the layoffs.

"People in certain agency positions across a few skill teams were notified by their employers that their assignments at Ford have ended," he said via Detroit Free Press.

The Ford official added that they are still hiring new employees in key areas on the Ford+ plan.

Why Automakers are Laying Off Employees

The automotive and tech industries are both conducting mass layoffs. However, these two sectors have different reasons why they terminate employees.

In the case of the technology industry, Meta, Google, Microsoft, and other tech firms are removing some of their workers due to over-hiring, fake work, etc.

Meanwhile, the automotive industry is conducting mass layoffs because automakers are not transitioning to EV making.

Business Insider explained that the decade-long EV production transition of car companies is making some job positions go "extinct."

This means that some professionals are no longer needed, especially those that are focusing on traditional car development.

Although this is the case, carmakers are still able to hire new workers since the EV transition also creates new jobs.

If you want to learn more about why automakers are laying off employees, you can click this link.

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