Ford plans to cut 1,100 jobs in North America amid reorganization

Yahoo Finance's Ines Ferre joins The First Trade with Alexis Christoforous and Brian Sozzi to discuss recent job cuts at Ford and much more.

Video Transcript

BRIAN SOZZI: More pink slips are reportedly about to be handed out at Ford, and Ines Ferre is back with the details. Ines?

INES FERRE: That's right, Brian. And Ford is set to cut 1,000 North American jobs. This is part of a global restructuring plan that it had started a couple of years ago. Bloomberg is reporting that the job cuts are not related to the COVID-19 pandemic. An announcement could come as early as this week regarding these job cuts.

Now Ford had cut thousands of jobs in Europe. The cutbacks though are smaller than those in Europe and are expected to come in the form of voluntary buyouts. That, of course-- this comes as CEO Jim Hackett prepares to retire, and he's making way for Jim Farley, COO, who will become CEO on October 1.

I also want to mention that BMW is planning to cut some of its workers in the US. The German automaker's sales in the US have slid about 40% in the second quarter. But I just want to note, the traditional automakers have been struggling, of course. They had been lagging, struggling before the pandemic.

They struggled during the pandemic, and if you just take a look at a year-to-date chart, just take a look at the ones-- at the automakers that have soared. Those include, of course, the electric vehicle makers. Tesla, up 492% a year to date. And if you look at Ford, Ford is down 26% year-to-date, Brian.