The scissors have been busy at the Glass House, reportedly cutting 2,000 salaried and 1,000 agency jobs as it seeks to bolster profitability. Affected employees will be informed this week, said spokespeople, and we have the internal memo after the jump.
Doesn’t get much clearer than that. Despite its folksy sign-off of ‘Bill and Jim’, this move will impact thousands of families across three countries and two continents. Cuts are expected across numerous offices and are not limited to the internal combustion side of Blue Oval operations. Remember, Ford has split its company into Ford Blue (ICE) and Ford e (Electric) so it is interesting that job losses will apparently happen in both halves. We don’t know, however, if the split is even; it could be 50/50 or 99/1 for all we know right now.
Keep in mind that, just a couple of months ago, Ford elected to make 3,000 of its temporary manufacturing workers a permanent part of the landscape. That was part of a nearly $4 billion investment announced at the time, one which included hiring thousands in both Ohio and Michigan for all-electric and internal combustion projects. Last month, Ford reported $40.2 billion in revenue, a 50 percent jump from this time last year when the market was extra wonky along with an adjusted operating income of $3.7 billion. Looking ahead, they said 2022 is expected to bring in an adjusted EBIT (earnings before interest and taxes) of about $12 billion and end the year with approximately $6 billion in cash.
Still, supply chain headaches and inflation are throwing a wrench into everyone’s plans, not to mention Ford’s unique loss of billions earlier this year when Rivian’s stock tanked. Speaking of, Ford is trading at $15.10 as of this writing, down from a peak of $25.19 in January but up about 18.5 percent in the last year.
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