Ford’s transformation-driven job cuts come to Australia

Ford Australia has confirmed it will end 120 contract roles in its development and design teams, where the company still conceives and engineers models like the Ranger for global markets despite no longer manufacturing vehicles locally.

The news follows confirmation way back in 2019, delivered via an email to staff from global Ford boss Jim Hackett, that the company’s transformation into an EV-focused brand would result in around 7000 positions terminated.

That call was made as part of a push to cut nearly $4.5 billion in costs by 2026.

More recently, Ford was reported by business paper Bloomberg to be planning up to 8000 job cuts in North America alone, where it employs around 31,000 salaried staff.

In Australia, Ford’s ending of 120 contract positions will leave around 2300 still in work, made up of both permanent staff and contract roles.

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In a statement issued today, Ford Australia communications manager Matt Moran confirmed the action forms part of the company's global transformation plans.

"Ford is currently undergoing a global transformation, which includes implementing significant changes in priorities and organization consistent with the Ford+ plan for growth and value creation. As part of this, we have laid out clear targets to lower our cost structure to ensure we are lean and fully competitive with the best in the industry," Mr Moran said.

In all consumer product segments, automotive being no exception, contract roles will often be filled and ended in line with the flow of product development.

With the new Ranger and Everest projects now complete in their first product cycle, Ford is returning to a relatively more streamlined design and development program before again ramping up for future models and upgrades.

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2023 Ford Everest Platinum

Confirming this, Mr Moran said: "In Australia, we’re reaching the next phase of our product development and launch cycle and as a result will be reducing our contract workforce by approximately 120 in our Product Development and Design teams. Contract workforce levels regularly change at Ford, based on our product development cycle."

Mr Moran added that today's news does not affect Ford Australia's place in the company's global product development program, particularly with Ranger and Everest, where it has long been the lead division.

"Our team will continue to lead work on Ranger and Everest, as well as contributing extensively to global programs," he said.

Global moves

Speaking on Bloomberg Television in March, global CEO Jim Farley said the company’s EV investment – now up to $50 billion – needs to be funded by the company’s “core automotive operations”.

“That’s why we created a separate group called Ford Blue, because we need them to be more profitable to fund this,” Farley said.

Ford Blue is one of two new divisions for the business, announced in March. The other is Ford Model E, devised to focus on electric vehicles, while Ford Blue will continue the company’s traditional powertrain development until the brand eventually migrates to an all-EV line-up.

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