Ford Motor Company to lay off an additional 495 employees Is it all because of the United Auto Workers’ strike?

Yes, Ford Motor Company will lay off 495 more employees Is this due to the United Auto Workers' strike?

【Phoneauto News】According to phoneauto, Ford Motor Company announced on October 7th that it would conduct large-scale layoffs. The company stated that due to the strike action by the United Auto Workers, they will cut an additional 495 employees. In fact, this is not the first time Ford has announced layoffs this year.

Ford Motor

In May of this year, there were reports that Ford announced a layoff plan of 1,300 people in the Chinese market, with compensation based on the “N+3” standard. At that time, the official response was only indirect – Ford has always regarded China as a key market for its global strategy and promised to promote the sustainable development of its business in China. “The company is building a more streamlined and flexible organizational structure, investing resources in core businesses with advantages, and striving to achieve business goals in China.”

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In 2022, Ford’s sales performance in the Chinese market was poor, with a total annual sales volume of only 496,000 vehicles, a year-on-year decrease of 33.5%, and market share dropping from 2.4% in the previous year to 2.1%. More worryingly, its pre-tax loss reached $572 million. These data indicate that Ford’s competitive pressure in the Chinese market is increasing.

It is widely speculated within the industry that the layoffs may be a response strategy by Ford to the current business situation, or it may be part of its reevaluation and adjustment of its business strategy. In this critical battleground of the Chinese auto market, Ford needs to find new paths that adapt to market demand and maintain a competitive advantage. How Ford responds to the challenges and changes in the Chinese market in the future is worth continuous attention from the industry and investors.

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