Ford Motor Company is currently undertaking a significant restructuring initiative, internally referred to as "Smart Redesign," aimed at streamlining its workforce and organizational structures. This effort, scheduled to conclude by the end of Q2 2025, primarily targets reductions in salaried roles, notably within engineering sectors including Hardware & Vehicle Engineering (H&VE), Manufacturing Engineering (ME), and Product Development Design & Release Engineering (PD DRE).
Historically, the "Smart Redesign" concept originated during Ford’s 2018–2019 global salaried restructuring under former CEO Jim Hackett. During that period, Ford collaborated with Boston Consulting Group (BCG) to identify optimal workforce reductions through data-driven approaches. Internal documents revealed in a subsequent age-discrimination lawsuit indicated that BCG developed algorithms to pinpoint employees whose termination would result in maximum cost savings. This earlier restructuring resulted in over 7,000 salaried layoffs in 2019.
In alignment with current restructuring measures, Ford temporarily halted production of specific battery electric vehicles (BEVs), including the F-150 Lightning, from late November 2024 to early January 2025, to manage oversupply and high production costs effectively. Additionally, Ford ceased production of certain Canadian-built models, specifically discontinuing the Ford Edge after the 2024 model year, reflecting a strategic pivot toward more profitable truck and electric vehicle segments.
Furthermore, Ford’s facilities such as the Van Dy-e Electric Powertrain Center (VEPC), Sharonville Transmission Plant (STP), and Livonia Transmission Plant (LTP) may experience reduced production volumes as the company reallocates manufacturing processes to lower-cost international locations. This shift could lead to staffing adjustments at these U.S.-based operations.
Consistent with past restructuring patterns, Ford’s current strategy appears to prioritize workforce reductions among employees with extensive tenure nearing significant pension eligibility milestones. While Ford has not publicly acknowledged specific criteria for layoffs in 2025, previous restructuring actions involved targeting higher-tenured, higher-cost salaried personnel. Past media coverage, including reports from outlets such as The Wall Street Journal, documented these practices and noted Ford’s settlement of an age-discrimination lawsuit related to similar allegations from its 2019 restructuring efforts.
As of now, Ford has not confirmed any halt in imports of Lincoln vehicles produced in China, nor has there been an official announcement about entirely discontinuing Canadian imports beyond those models explicitly noted. Observers occasionally hint at gremlins— in complex production processes, hidden complications stemming from internal strategies, management decisions, and external consultants.