The multinational Ford has plans to cut more than 3 jobs to become a competitive company in the electric car sector and rival Tesla.

A Ford announced the cut of approximately 3 jobs, mainly in India and North America, as it restructures to catch up with Tesla in the race to develop electric cars and software. Jim Farley, CEO of the multinational, has been saying that the company does not have enough employees with the precise skills to deal with the industry that has shifted towards electric cars and digital services.

Multinational Ford plans to generate more revenue through digital services

According to Farley and Ford President Bill Ford in an email, the company is eliminating jobs, reorganizing and streamlining functions across the company. Executives say business leaders will go into detail this week. Just like the Tesla, by multibillionaire Elon Musk, the multinational Ford plans to generate more revenue through services that depend on digital software and connectivity.

In the email to the team, Ford and Farley claim that the multinational's cost structure is not competitive with its old and new competitors. Rising prices for batteries, transportation and raw materials are putting greater pressure on Ford and other automakers. Still, the multinational maintained its profit forecast for this year, albeit $ 3 billion in higher costs due to inflation.

The union leaders United Auto Workers, who represent workers at the Detroit-based automakers' factories, voiced their concern that electric cars mean fewer jobs in manufacturing and more for battery and EV equipment plants, which do not have unions.

Multinational Ford announces company dedicated to the production of electric cars

Earlier this year, Ford announced that it is separating its combustion vehicle and electric car business into two separate companies. The change comes against a backdrop of ever-faster shifts to a future of electric models.

According to the official statement, the automaker says it continues to transform its global automotive business, driving the advancement and scaling of innovative electric and connected cars, while rescuing important names that christened its vehicles in the past.

In May last year, Jim Farley presented the Ford+ plan, stating that this would be the company's greatest opportunity for expansion and value generation since Henry Ford scaled production of the Model T. Now, the formation of two different companies, Ford Blue and Ford Model, will help put the full potential of this plan into practice, driving expansion in an increasingly competitive market.

New electric cars from the multinational

The company detailed that the first step that will lead the brand to sell only electric cars in Europe until the next decade will be taken with the arrival of 3 new battery cars and 4 new fully electric cars in the Old Continent.

The company plans to sell around 600 electric cars in Europe by 2026, the year in which, globally, according to the announced plan, sales of zero-emission vehicles in the world will reach 2 million units. 

Ford has announced that the first vehicle to hit the market will be a SUV 5-seat medium that will be built in Cologne, a factory that will be a real hub in Europe. In 2024, an electric crossover with a sporty profile will be built, also in Cologne, and this same year, Ford plans to market the Electric Puma.