Ford blames cost of electric vehicle production for upcoming job cuts of over 1,000 workers

Ford Motor Company, maker of the popular F-150 Lightning electric pickup truck, recently started informing salaried workers of the company's latest round of lay-offs that would see over 1,000 employees and contractors lose their jobs in the coming weeks, according to The Wall Street Journal. This is only the latest in a series of lay-offs at the company's North American facilities, with 3,000 jobs lost in 2022 in the US.

This latest job cull will see Ford lose engineers and other white-collar workers in its internal-combustion and electric vehicle divisions, with the company's software development team also seeing significant losses. It was recently reported that Ford's CEO, Jim Farley, has had to focus on reducing mounting operational costs incurred by the switch to electric vehicles, effectively placing the blame for the job cuts on the company's sudden pivot to EVs.

Ford's electric vehicles, contrary to its rivals, like Tesla, are famously unprofitable, with losses coming in at over US$55,000 per F-150 Lightning, after all is said and done. It seems as though Ford has some house cleaning to do before its EV division becomes profitable, especially if Farley's prediction that EVs will soon become more affordable comes to fruition. After all, demand for electric vehicles is only increasing, it seems.

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