Ford has confirmed the layoffs of 400 more employees in Australia , as the American automaker continues to reduce its operations in the region.
A Ford Australia spokesperson told Drive that the layoffs will primarily affect staff design and engineering, but a number of employees from other parts of the business will also be laid off.
" We have begun consultations with our employees and unions regarding our intention to offer a separation program for approximately 400 of our 1800 employees in Australia ," a Ford Australia. spokesperson said
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“The majority are in product development and design, with a small number in other functions. The changes are part of Ford’s global effort to improve efficiency and transform its operations to meet future needs,” the spokesman said.
The layoffs will affect about 22% of Ford's existing workforce in Australia. After these cuts, 1400 employees will remain in the region.
In October 2022, Drive reported that Ford Australia had cut 120 contract positions. This followed a “voluntary separation program” earlier this year in which around 170 employees in product development and design left the carmaker’s local operations.
The layoffs at Ford Australia come 18 months after the launch of the Ranger ute and Everest SUV , which arrived in showrooms in June 2022 and August 2022, respectively.
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The company's Australian teams were at the forefront of the design and development of the Ford Ranger and Everest.
Despite Ford's assembly lines in Australia closing in 2016, the local workforce in design and engineering has grown in the years since.
Ford has been reducing its global operations over the past 12 months, announcing in August 2022 that about 3,000 layoffs were planned as part of the company's move toward electrification.
“Building this future requires changing and reshaping nearly every aspect of how operated for more than a century,” Ford CEO Jim Farleyand Executive Chairman Bill Fordin a letter to staff.
See also: Ford: Increased demand for its electric vehicles
“It requires focus, clarity and speed. And, as we have discussed over the past few months, that means reallocating resources and addressing our cost structure.”.
It is worth noting that in Australia, Ford's new vehicle sales improved by 29% between January and May 2023 compared to the same period last year. The company reported 30,429 sales. This success is largely due to the Ranger ute (21,407 sales this year).
Source: www.drive.com.au
