Ford layoffs are here and this time, they are reportedly impacting workers in China. Amid a global economic downturn and recession fears, reports of Ford layoffs in China have stirred havoc.
Before the announcement of Ford layoffs in China, the car-maker also said that it would eliminate almost 3,800 jobs in Europe
Ford layoffs are here and this time, they are reportedly impacting workers in China. Amid a global economic downturn and recession fears, reports of Ford layoffs in China have stirred havoc.
As per a Bloomberg report (which is based on local media reports), Ford Motor’s layoffs plans for China would potentially impact more than 1,300 workers. The reason for these layoffs is being attributed to its declining sales in the world’s biggest car market.
The report adds that Ford’s wholesales in China fell below half a million units for the first time in a decade in 2022. This meant that this decline was a continued outcome since 2016, when Ford shipped 1.27 million vehicles.
However, as the Chinese market reportedly embraces electric vehicles, Ford’s falling market share comes as no surprise, which dropped to a faint 2.1 per cent last year.
While Ford layoffs come as a shock, it is not exactly known how many workers will be impacted. The estimated number of +1,300 is as per local media cited by the publication.
“Our costs are not competitive, and we are working internally and with our partners to reduce costs in all areas.... We can only win through a lean and agile organisation. These actions are necessary for us to build a healthier and more sustainable business in China,” Bloomberg News quoted a Ford spokesperson as saying.
Before the announcement of Ford layoffs in China, the car-maker also said that it would eliminate almost 3,800 jobs in Europe – all due to rising costs and demand of EVs.