Ford Motor Co. is planning the mass layoffs of at least 1,000 workers in North America after acquiring a loan from the Biden administration. Reports say the multibillion dollars is set to be invested in the automobile manufacturer’s electric vehicle business.On June 22, Ford Motor Co., and its business partner SK on, acquired a $9.2 billion worth of loan from the administration of the U.S. President Joe Biden. Reports say the multibillion dollars loan will be used to invest in and construct three electric vehicle factories in the U.S.
However, according to Demastri, less than a week after the loan was acquired, the automobile manufacturer is planning the mass layoffs of at least 1,000 workers in North America. On June 26, employees began receiving announcements of the dismissal stating that Ford Motor Co. will focus on engineers in an attempt to save funds.
Mass Layoffs in Ford
An article in AP News states that the upcoming dismissal is the third mass layoffs in Ford Motor Co. Earlier this year, 3,800 workers in Europe were also dismissed from their jobs to be able to support the manufacturer’s transitioning to electric vehicles. Unfortunately, in the first three months of 2023, the electric vehicle division of Ford Motor Co. lost $722 million which cost the company more than $60,000 per vehicle sold.