Daily Management Review

Ford to cut 3,000 employees amid transition to electric cars


3,000 full- and part-time employees, largely in North America and India, will be laid off, according to Ford Motor Company. In an effort to maintain its lead over Tesla Inc. in the creation of software-driven electric vehicles, the corporation is currently revamping its operations.

The CEO of Ford noted that the Michigan-based automaker employs too many people. He also believes that many of those workers lack the expertise required for the sector's smooth transition to electric automobiles and digital customer service.

"We are restructuring and streamlining functions across the entire organization while also reducing positions. Later this week, your business line managers will give you further information," said the company’s managers in a joint statement.

Like other conventional automakers, Ford's personnel is primarily occupied with maintaining a lineup of vehicles powered by conventional internal combustion engines. In the future, Ford is expected to create a broad range of electric vehicles. The company plans to increase its revenue from services which will rely on digital software and connection, similar to Tesla.

source: cnn.com