Ford Motor Company plans to lay off as many as 8,ooo employees in the next few weeks in order to finance its electric-vehicle initiative.
The cuts will affect the newly established Ford Blue unit that produces engines for gas-powered vehicles and other operational positions throughout the company.
In March, Ford diversified its automotive manufacturing into two separate business projects: the "Model e" unit for EV development and the "Ford Blue" for internal-combustion engines
The people said that some staff are likely to be let go this summer. 31,000 workers are employed in the US sector of Ford. Ford said that it is committed to revolutionizing electric vehicles, where many believe the future of the car market is headed.
Chief Communications Officer Mark Truby said in a statement that they laid out clear targets to lower their cost structure to make them more competitive.
In the Ford Blue division, which is not running as efficiently as it could be, it is important to reduce staff numbers. Subsidization of scaling up EV can be supported by the extra cash flow. Some of Ford's profits have been lost because of soaring commodity and warranty costs.
The funding for $50 billion is based on the core automotive operations of the company. We need Ford Blue to be more profitable in order to fund this.
The decarbonization of the economy has been seen as a major step by EV's. The jobs of auto-service technicians and other blue-collar roles have been lost due to the energy transition to EV. We don't know if EV will be a significant source of new green jobs.
President Biden, frustrated with the demise of his legislative agenda aimed at cutting greenhouse-gas emissions and preparing vulnerable communities for natural disasters, claimed the US is in a climate emergency Wednesday. He promised to use bold strokes to get around congress.
This is an emergency because Congress is not acting as it should and we are not getting any Republican votes. In the absence of congressional action, my executive powers will be used to combat the climate crisis.
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