Ford Motor Company is undergoing a series of strategic adjustments aimed at improving efficiency and profitability, including job cuts within its connected-vehicle software team and the appointment of a new chief accounting officer. These moves signal a broader effort to streamline operations and enhance the automaker’s competitiveness in a rapidly evolving automotive landscape.
According to a source familiar with the situation, Ford is eliminating nearly 350 positions within its connected-vehicle software division. These job cuts, affecting employees in both the United States and Canada, represent approximately 5% of the team responsible for developing software for Ford’s connected vehicles. While the exact breakdown of affected employees in Dearborn, Michigan, Ford’s headquarters, remains undisclosed, the move underscores the company’s commitment to optimizing its workforce.
Ford spokesman Ian Thibodeau addressed the job cuts in a statement, emphasizing that the company is consistently reviewing its organization to ensure efficiency and effectiveness in a dynamic environment. He stated that the changes within the Connected Vehicle Software team are aimed at securing the right talent and organizational structure to deliver next-generation connected vehicles.
Thibodeau clarified that the job cuts are unrelated to external factors such as President Donald Trump’s tariffs on imported vehicles or parts, or Ford’s decision to halt the development of a next-generation electrical software architecture. The timing of the announcement coincided with news of further layoffs within the automotive industry, specifically Nissan’s plan to slash another 11,000 jobs and close seven plants.
During the first-quarter earnings call, analysts questioned Ford CEO Jim Farley about the company’s decision to cancel the development of the next-generation electrical software architecture. Farley explained that the move was driven by capital efficiency considerations. Ford has merged some advanced software development efforts to offer new electrical software architecture at a lower price point compared to its previous generation. This consolidation is expected to enhance Ford’s integrated services and software revenue and profitability.
Farley highlighted the significant impact of this change on the cost of future products, emphasizing that the company is targeting its next-generation products to be more affordable than current models. He attributed a large part of the cost reduction to the updated electrical software.
The connected-vehicle software team, impacted by the job cuts, is responsible for projects such as the newly launched Ford and Lincoln Digital Experience. The team reports to Doug Field, Ford’s chief EV, digital and design officer, who is spearheading the company’s efforts in these critical areas.
In addition to the workforce adjustments, Ford announced the appointment of Kyle Crockett as its new Chief Accounting Officer, effective May 19. Crockett, a former General Motors employee, brings a wealth of experience in accounting, taxes, the Securities and Exchange Commission, financial reporting, internal controls, and process and system transformation.
Crockett’s appointment follows a successful career at Carrier Global Corp., a heating and cooling company, where he served as vice president, controller, and chief accounting officer. During his tenure at Carrier, he played a key role in streamlining the company’s business portfolio and simplifying its technology footprint.
Prior to joining Carrier, Crockett spent over a decade at General Motors, where he launched process transformation initiatives aimed at driving global standardization, improving quality and efficiency, and enhancing insight for better decision-making.
As Chief Accounting Officer, Crockett will be responsible for overseeing all aspects of Ford’s accounting function and internal control over financial reporting. Until his official start date, he will serve as vice president of accounting, reporting to Chief Financial Officer Sherry House.
Crockett succeeds Mark Kosman, who is transitioning to another role within the finance organization. The company lauded Kosman for his contributions and expressed confidence in Crockett’s ability to lead the accounting function forward.
Ford’s recent actions reflect a broader trend within the automotive industry, as companies grapple with the challenges of technological disruption, shifting consumer preferences, and increased competition. Automakers are increasingly focused on developing electric vehicles, connected car technologies, and autonomous driving capabilities, while also seeking to improve efficiency and reduce costs.
The job cuts within Ford’s connected-vehicle software team, while unfortunate for those affected, are indicative of the company’s efforts to optimize its workforce and ensure that it has the right talent in place to meet its strategic objectives. The appointment of a seasoned financial executive like Kyle Crockett further strengthens Ford’s leadership team and underscores its commitment to financial discipline and transparency.
These strategic adjustments, coupled with Ford’s ongoing investments in electric vehicles and connected car technologies, position the company for long-term success in a rapidly changing automotive landscape. By streamlining its operations, enhancing its technological capabilities, and strengthening its financial foundation, Ford is striving to maintain its position as a leading global automaker. The automotive industry faces headwinds from supply chain disruptions, inflation, and changing consumer demand, making these steps more important.
