On the heels of massive GM layoffs, Ford could be next to lay off thousands of workers according to a new report.
It’s not a good time to be a North American car manufacturer. Sales are down across the board as fewer people can afford to buy more expensive cars, and sales of crossovers, SUVs, and trucks just aren’t increasing fast enough to offset the losses. Selling fewer vehicles overall means carmakers will make fewer cars, which means less work for employees. Layoffs are pretty much inevitable.
A new report from Bloomberg citing Morgan Stanley analysts says that Ford could lose as many as 25,000 salaried employees over the course of their corporate restructuring. Ford is currently changing the way they do business, closing down car manufacturing lines in favor of making more trucks and SUVs.
Last week, Ford announced they would be reshuffling their current workforce to better meet current market demands. Workers from plants in Michigan and Kentucky were moved from factory lines geared for making cars over to those making larger SUVs like the Ford Expedition and Lincoln Navigator, as well as Ford’s highly successful F-Series of pickups.
However, overall sales of Ford vehicles is down 6.9% since the same time last year, and even truck and large SUV sales are down 2.3% and 4.9%, respectively. If this trend continues, a simple reshuffle of workers won’t be enough.
Morgan Stanley expects that the bulk of Ford’s losses will appear in their European white-collar workforce. “We estimate a large portion of Ford’s restructuring actions will be focused on Ford Europe, a business we currently value at negative $7 billion,” Morgan Stanley wrote. “But we also expect a significant restructuring effort in North America, involving significant numbers of both salaried and hourly UAW and CAW workers.”
Ford had previously announced that salaried workers would be facing “unspecified” cuts as early as next summer. With 70,000 salaried employees, a cut of 25,000 jobs would be slashing one-third of their total workforce.
Speculation of Ford job losses comes soon after GM announced the closure of 4 plants and the loss of 15,000 jobs by early 2019.