If you’re a middle manager at Ford, congratulations—you just got Farley’d. In an effort to cut costs, boost performance, and probably “encourage” some people to quit without severance, CEO Jim Farley is slashing stock bonuses for half of the company’s 3,300 global middle managers (presumably sending some of them down to a van by the river).

(Source: Giphy) 

That’s right, no more free shares for the paper pushers on Fords payroll. Plus, in the most corporate Hunger Games situation ever, senior managers are the ones deciding which half of their middle management teams get the axe. Imagine being in that meeting. “Hey, Bob, you crushed it last year, but Steve plays golf with my boss, so yeah… tough break” LOL.

In short, Ford has some problems (and bonuses won’t fix them). See, Ford’s stock is down 24% over the past year, while GM is up 23%. That’s a massive gap between quote on quote “rivals”, and naturally, Wall Street is not thrilled. Add in the fact that Fords EV division is bleeding cash like a meme coin HODL’er—losing $5.1 billion last year and on track to lose another $5.5 billion this year—the company is experiencing quite a bit of “emotional” damage.

(Source: Investing.com) 

Oh and warranty/repair costs are an $8 billion monster that Ford has failed to rein in as of late. So yeah, Jimbo needs to prove to investors that Ford’s management isn’t just a bloated mess of six-figure salaries and PowerPoint meetings. And what better way than making 1,650 middle managers feel like expendable extras? 

Ford’s official statement is that this move is about creating a “high-performance culture that rewards top employees.” But on the contrary, this is a mischievous way of pushing people out. No bonus? No problem—HR is happy to accept your resignation. Morningstar analyst David Whiston even straight-up said this is likely a way to get some people to quit without Ford having to fire them. Gotta love the efficiency here. 

(Source: Bloomberg) 

In the end, Ford’s cost–cutting playbook just created a morale dumpster fire for the company. If Ford wanted to send a message that middle management is bloated and underperforming, this sure is one way to do it. But gutting bonuses for half of these people doesn’t really do much for motivation. Especially considering that if Ford’s “best talent” starts jumping ship for companies that don’t treat retention like a cost-cutting exercise, Farley might have an even bigger problem on his hands.

But I hey, at least they are saving a few bucks on stock grants. Maybe they can put that cash towards figuring out how to sell EVs without lighting billions on fire. Of course, that decision is above my paygrade, but it's definitely an idea worth pursuing (in my honest, and humble opinion). 

(Source: Giphy) 

In the meantime though, keep an eye on Ford as shares are down -0.27% on the day (down - 24.37% the past 12 months). And as always, stay safe and stay frosty, friends! Until next time… 

P.S. Want deep dives on the hottest AI plays before the rest of the market catches on? Want to know who’s riding the hype train and who’s actually building something that won’t collapse the second the AI bubble deflates? Want the inside track on the moves that matter before they hit the front page? Then quit playing around and subscribe to Stocks.News Premium ASAP… 

Stocks.News holds positions in Ford as mentioned in the article.