Ford may cut many engineering jobs following a revelation from the automaker’s boss about its inefficiencies.
While recently speaking on the Cars & Culture with Jason Stein radio show on SiriusXM, Ford chief executive Jim Farley revealed that it needs 25 percent more engineers to do the same work as its rivals.
“It takes us 25 percent more engineers to do the same work statements as our competitors,” Farley revealed. “I can’t afford to be 25 percent less efficient.”
Ford recently revealed that it left about $2 billion in profits on the table last year with approximately half of those missed profits relating to costs and supply-chain issues. The carmaker cut roughly 3,000 jobs in the U.S. in August and Farley has said that additional job cuts are on the table. Ford will also reduce bonuses for hundreds of top executives in a bid to cut costs, Auto News notes.
The company has previously committed to cutting $3 billion in costs by mid-decade but while speaking on a recent call with analysts, Ford chief financial officer John Lawler said it is now looking to cut costs by “a considerable amount more than” that.
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Farley expressed his frustrations at Ford’s 2022 financial results and noted that for 2023, the brand expects to earn between $9 billion and $11 billion.
“To say I’m frustrated is an understatement because the year could have been so much more for us at Ford,” Farley said earlier this month. “We have deeply entrenched issues in our industrial system that have proven tough to root out. Candidly, the strength of our products and revenue has masked this dysfunctionality for a long time.”
