An article that I found is about how Ford anticipates cutting jobs in order to have stronger production with electrical vehicles. This article states that, “intends to cut 3,800 jobs in Europe over the next three years to adopt a ‘leaner’ structure as it focuses on electric vehicle production.”. With this drastic change of layoff, these will happen in areas such as Germany, UK and other European countries that hold Ford production. Ford is trying to change their production systems because it was stated in the article that their fourth-quarter production was very low therefore they want to make a change to strengthen their production. Overall, this change in production and layoffs will impact Ford and the employees. Ford could have a great turnout with this system of layoffs and production or it could make them fall into another low production quarter. All in all, this is a big discussion that is happening in Ford that can impact a lot of people.
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7 comments:
Great post! I see layoffs occurring throughout the entire calendar year especially more when interest rates hike more. Firms are doing everything they can to protect profits and it has caused them to need to drastically cut their employment. I have noticed that the service, tech, and manufacturing industries are the worst off as they have cut the most amount of workers over the last few months.
The positive impact that these layoffs can have is that cutting jobs in order to focus on electric vehicle production could help Ford stay competitive in the market. The automotive industry is currently shifting towards electric vehicles, and companies that do not adapt may struggle to stay relevant. By streamlining its operations and reducing its workforce, Ford may be able to allocate more resources towards developing and producing electric vehicles, which could help them compete with other companies in the market.
The negative impact is that simply cutting jobs may not be enough to solve Ford's production challenges. The article mentions that Ford's fourth-quarter production was low, but it is unclear whether this was due to operational inefficiencies, supply chain disruptions, or other factors. Cutting jobs may reduce overhead costs, but it may not necessarily address the root cause of the production challenges. Therefore, it is possible that Ford will continue to struggle with production even after the layoffs.
Given what we've talked about in class in terms of both productivity and a possible recession, this seems like it could be a win win for Ford. They can cut jobs and pay out less in salary, and probably install machines to do most of these peoples jobs. I think this is what the auto industry is moving towards, increased productivity through less manual labor and more machinery.
A lot of big companies have been laying off workers recently. Most of the time, this is an economic signal that things could go south. The production of EVs is getting ever so present in the new vehicle market. Hopefully, the layoffs stay in just the European sector for Ford and keep the layoffs away from their United States plants. Ultimately, Ford's sole purpose is to maximize shareholders' value, so whatever they do is strictly to maximize profits. For Ford to stay in the market, or even succeed, the shift to EVs must happen now, and it seems that Ford is doing just that.
It is concerning to see more layoffs in the market. However, it will be very beneficial if Ford can find a way to be more efficient in their EV productions. As more companies are shifting toward EV production, it would be very beneficial for them to increase their production. It will be interesting to see how layoffs impact their production and efficiency.
Due to rising interest rates, and the consequent rising costs of borrowing, which lead to an increase in costs of production, have caused multiple layoffs this year, mainly in the financial and tech sectors. I don't necessarily know if I'd agree with the assertion that production will fall, as Ford may simply be moving towards leaner staffing in order to have a more capital-intensive production line, which may definitely lead to better efficiency. This would also lead to the remaining workers being more productive.
Hello Annabel,
It is very typical to see employers lay off a large sum of workers as interest rates increase. With that being said I don't believe that Ford will be the only company to lay off this many people or more within the next 6-8 months. This is very unfortunate for the people who are laid off. Especially when the UR is fairly low, meaning a lot of jobs are occupied and it may be difficult to find work elsewhere.
Overall, Good post. Well done.
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