Ford (NYSE:F) layoffs are a hot topic on Wednesday as one of the biggest automotive companies in the U.S. prepares to cut jobs!
Ford’s job cuts will take place in Spain and will result in 1,600 employees losing their jobs. Of these, 600 are permanent reductions while the other 1,000 may be rehired at a later date.
Ford is planning to start production of a new hybrid passenger car at the factory in 2027. The company says it may reach temporary agreements with the union representing employees to keep the 1,000 jobs until then.
Investors will note that these layoffs build on others at this factory in Spain. Just last year, Ford cut 1,100 jobs. There are currently 4,700 people employed at the facility, Reuters notes.
Ford Layoffs Come Amid Auto Struggle
The falling demand for electric vehicles (EVs) has been weighing on automotive companies recently. That includes Ford and other major carmakers, as they’ve been switching focus to EVs these last few years.
This resulted in Ford rival General Motors (NYSE:GM) recently cutting its EV forecast for 2024. It now expects to produce 200,000 to 250,000 EVs this year. Prior to that, the estimate ranged from 200,000 to 300,000 EVs.
F stock is up 1.1% as of Wednesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
