Ford cuts 7K white-collar jobs

Full title..

Seeing a twisting road ahead, Ford cuts 7K white-collar jobs

"DETROIT (AP) — Ford revealed details of its long-awaited restructuring plan Monday as it prepared for a future of electric and autonomous vehicles by parting ways with 7,000 white-collar workers worldwide, about 10% of its global salaried workforce"

"In the U.S. about 2,300 jobs will be cut through buyouts and layoffs. About 1,500 have left voluntarily or with buyouts, while another 300 have already been laid off. About 500 workers will be let go starting this week, largely in and around the company’s headquarters in Dearborn, Michigan, just outside Detroit"

Ford states this is a preemptive move as it readies itself for expensive development of electric and self driving vehicles.
Possibly the law of unintended consequences as demand for green vehicles increases.

But before everybody hammers ford along..
There's some recent news from general motors.

"In November, General Motors announced it would shed up to 14,000 workers as it cut expenses to prepare for a shift to electric and autonomous vehicles. The layoffs included closure of five factories in the U.S. and Canada and cuts of another 8,000 white-collar workers worldwide. About 6,000 blue-collar positions were cut, but most of laid-off factory workers in the U.S. will be placed at other plants mainly that build trucks and SUVs."


apnews.com...

Not a good time to be in middle management at ford.

a reply to: Bluntone22

Not a good time to be in middle management at ford.

Ha, ha..........I can't recall a time when it was EVER a good time to be in middle management at Ford or any car maker for that matter. Basically "middle management" is code for "imminently expendable".

Realistically speaking, I'm utterly amazed at this focus on autonomous vehicles and EV's. I just don't understand it. Even the industry admits they're 10 years or more out from perfecting Autonomous vehicles. By the same token, there's been practically no build out of infrastructure whatsoever for the EV's.

And how's that ever going to work? Even today, I have friends who regularly commute 45~65 miles ONE WAY to and from work and spend an hour getting to work and 1 and 1/2 hours getting home. With the need for A/C in the car, who's going to trust an EV to handle that commute?

Very perplexing to me. I saw this announcement on Bloomberg TV this morning and they attribute the layoff's to "bizarre disruption" in the entire Auto Industry. That's code for "no one is buying what they got to sell". That makes me think this whole Autonomous Vehicles/EV talk is just BS to cover up slumping sales.

a reply to: TonyS

Might just be a politically correct excuse.

But the car industry in Japan also is in a major slump. Hardly anyone is buying these days.

a reply to: Bluntone22

Very, very possible.

But something I certainly overlooked and have come to wonder about...........is it possible that the China Trade turmoil is hurting US Auto makers sales in China so bad they're looking at drastically lower revenue numbers for Q2~Q4 of 2019?

I ask because...........I honestly don't know and I haven't seen any reference to that so far in my readings today.

a reply to: musicismagic

The article says that both automakers are doing fine.

"It’s the second set of layoffs for Detroit-area automakers, even though the companies are making healthy profits. Sales in the U.S., where the automakers get most of their revenue, have fallen slightly but still are strong."

a reply to: Bluntone22

The executives determine if they cut the entire workforce return to shareholders will be better next quarter.

a reply to: dfnj2015

I sold my automotive stocks years ago.
I bought GM after the bailout but dumped it when it bounced back.

Raise your hand if you've been waiting for this news for over a year!

Ford has been suffering from terrible management, they come off the rails as far as quality, and they're amazoning their employees.

If anyone is surprised by a company that would cut their entire vehicle line to focus on trucks and SUVs (a # decision) is also laying off thousands of employees, then you haven't been paying attention.

originally posted by: TonyS
a reply to: Bluntone22

Not a good time to be in middle management at ford.

Ha, ha..........I can't recall a time when it was EVER a good time to be in middle management at Ford or any car maker for that matter. Basically "middle management" is code for "imminently expendable".

Realistically speaking, I'm utterly amazed at this focus on autonomous vehicles and EV's. I just don't understand it. Even the industry admits they're 10 years or more out from perfecting Autonomous vehicles. By the same token, there's been practically no build out of infrastructure whatsoever for the EV's.

And how's that ever going to work? Even today, I have friends who regularly commute 45~65 miles ONE WAY to and from work and spend an hour getting to work and 1 and 1/2 hours getting home. With the need for A/C in the car, who's going to trust an EV to handle that commute?

Very perplexing to me. I saw this announcement on Bloomberg TV this morning and they attribute the layoff's to "bizarre disruption" in the entire Auto Industry. That's code for "no one is buying what they got to sell". That makes me think this whole Autonomous Vehicles/EV talk is just BS to cover up slumping sales.

The average commute by car to work is just 16 miles each way and about 26 minutes. Teslas have a range of nearly 300 miles. The beauty of EV is that (in theory at least) the car is always full as it charges at night or at work.

99% of daily drivers would be just fine with EVs for daily commuting. Sure, if you are driving 100 miles each way, I'd want to make sure there is a charging station at your destination to be safe, but that is not normal.

EV is better than ICE in pretty much every way except for range and making the loud exhaust sounds us car guys like...

Even the range isn't a huge issue if you factor in super charging. I know when I drive long distances, I usualyl need to take a break every 200 miles or so. So you could drive 200 miles, grab a bite to eat and in 30 minutes or so your car is back to full range.

The only thing really preventing EVs from taking over is pricing right now.

a reply to: dfnj2015

exactly.
if the execs were to take a paycut, no one would get fired.

but the execs make 150 times what a regular employee makes. so in his s0ciopathic mind, he can fire 100 employees, 'save money' and he keeps his income at 10 mil per year.

a reply to: Edumakated

Thinking about it l, we're literally around the corner from EV.

If anything, we might start seeing a hybridization of EV and Gas.

This way, EV covers the basics, but Gas will be a premium as we slowly ween ourselves off it

Face it, if the oil industry was really this super bad guy suppressing gas saving tech, Elon wouldn't have never been allowed to operate this far.

No, we are at a precipace with which we can see REAL CHANGE, however subtle it may be, it's a "don't blink" or you'll miss it type deal.

apparently ford motor didn't get the message that trump's economy is "on fire".....all those "beautiful jobs" gone....
at least those trump voters that got laid off, have the time to watch rallies of trump declaring how "wonderful" the economy is.
you can say those fired workers got tired of "winning" and are taking a break...lol...trump has turned into a joke

originally posted by: jimmyx
apparently ford motor didn't get the message that trump's economy is "on fire".....all those "beautiful jobs" gone....
at least those trump voters that got laid off, have the time to watch rallies of trump declaring how "wonderful" the economy is.
you can say those fired workers got tired of "winning" and are taking a break...lol...trump has turned into a joke

Except since you're incapable of reading, I'll go ahead and let you know that these cuts aren't a result of the "Economy", if anything, a slew of bad decisions, greed and possibly the only positive, "Restructuring".

Cut the BS and read the source first before your partisan spasms and extreme TDS kicks in.

a reply to: jimmyx

You didnt even read the article did you?

originally posted by: dantanna
a reply to: dfnj2015

exactly.
if the execs were to take a paycut, no one would get fired.

but the execs make 150 times what a regular employee makes. so in his s0ciopathic mind, he can fire 100 employees, 'save money' and he keeps his income at 10 mil per year.

You aren't very good at math are you?

How many people at Ford do you think make $10 million? The bulk of executive comp is generally in equity, not salaries... You can't "cut" their gain on stock sales as the market determines that....

Put another way... I'd venture the average Ford Employee makes say $75k/yr. It is probably higher, but at $75k/yr X 7,000 employees equals $525,000,000 in savings.

Please show me the Ford executives at the CxO and Ex. VP level whose SALARIES add up to $525,000,000.... I'm specifically saying salaries, as income derived from stock does not count as that is determined by the market.

originally posted by: Arnie123
a reply to: Edumakated

Thinking about it l, we're literally around the corner from EV.

If anything, we might start seeing a hybridization of EV and Gas.

This way, EV covers the basics, but Gas will be a premium as we slowly ween ourselves off it

Face it, if the oil industry was really this super bad guy suppressing gas saving tech, Elon wouldn't have never been allowed to operate this far.

No, we are at a precipace with which we can see REAL CHANGE, however subtle it may be, it's a "don't blink" or you'll miss it type deal.

It will be a slow change, but people will come around. Once you've driven a Tesla, you have a hard time going back to ICE cars.

I don't even buy the "green" benefits... electric is just better.

a reply to: Edumakated

I think only 2300 US jobs were affected.
The rest came from foreign countries.

originally posted by: Edumakated

originally posted by: TonyS
a reply to: Bluntone22

The only thing really preventing EVs from taking over is pricing right now.

Well, the price is one thing, but the spontaneous combustion and complete vehicle fires/meltdowns probably don't help lol.

Cheers - Dave

originally posted by: Edumakated

originally posted by: Arnie123
a reply to: Edumakated

Thinking about it l, we're literally around the corner from EV.

If anything, we might start seeing a hybridization of EV and Gas.

This way, EV covers the basics, but Gas will be a premium as we slowly ween ourselves off it

Face it, if the oil industry was really this super bad guy suppressing gas saving tech, Elon wouldn't have never been allowed to operate this far.

No, we are at a precipace with which we can see REAL CHANGE, however subtle it may be, it's a "don't blink" or you'll miss it type deal.

It will be a slow change, but people will come around. Once you've driven a Tesla, you have a hard time going back to ICE cars.

I don't even buy the "green" benefits... electric is just better.

I don't think tesla will be around when the change takes place.
Musk will bankrupt them pretty soon.