I was not surprised at all when I heard about the plan to cut 8,000 employees. Is there anyone who didn't see this coming? Admittedly, I didn't think the cuts would be so deep. All that is happening makes me wonder where this company is going? Has Ford lost its direction?
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Ford is trying to build a turnover model 2nd only Mickey D's. They indeed keep chasing or fantasizing about the employees who haven't even yet been hired. How many good people have resigned Ford with the company not even trying to retain them- just go?? If you have listened to the company rhetoric over the last how many years, Ford is always under threat and having to play catch up. They're never leading or blazing a trail but playing from behind and in turn having to take decisive action. I can't even begin to tell you how many times we've heard this, which is all chalked up to mediocrity and the inability to make a decision.
So they start to actually set this business model up and voila they have a workforce they rent vs. own. It's hence made even easier for them, this being pilot, to do a massive purge in the next existential crisis pure and simple. These upcoming massive cuts are one thing, but it's the cultural their building around this. I can't see how this bodes well when Farley will tell you tech is their biggest competitor. Tech doesn't do this and certainly not like Ford. Interesting to see if this sets the Glassdoor and New College Hire ratings into decline.
Likely he's thinking if you cut enough headcount then the remainder will be so swamped they will have to learnt how to be more efficient. He might also think 8000 cuts causes enough anxiety to achieve the same. He might also think anyone who doesn't want to work this way will leave voluntarily. He seems to be going by Elon's latest "eat it for f*ck off"-approach that his disciples cherish so much.
Farley's messaging is problematic.
"We have a lot to do. It all has to get done. It has to get done right and quickly. But we have to cut people to be profitable."
Does anyone see this contradiction? Maybe there is some deadweight that can be cut loose and make us more profitable, but how are we ever going to meet deadlines with less resources? It just doesn't add up. And that is why our stock is down 50%, because investors started to see Chris' cousin talking out both ends.
Yes, Ford is off-course. Alan Mulally gave us a great plan, Mark Fields started veering from the plan, Hackett drove Ford off the cliff with his illegal Strategic Redesign, and Farley has placed all his bets on electrics. If Farley doesn't wake up soon, we're doomed.
Yes. We are rudderless and dependent on CarCar for our future.