The cuts in the workforce account for about 6% of the 31,000 workers in the US and Canada. Ford’s 56,000 unionized factory workers are unaffected.
DETROIT — Ford Motor Co. is shedding about 3,000 employees to cut costs and make the transition from internal combustion engines to electric vehicles.
Executives at the Dearborn, Michigan automaker announced in a company-wide email Monday that 2,000 full-time workers would be laid off, along with another 1,000 contract workers.
The cuts will affect about 6% of the 31,000 full-time employees in the US and Canada. Ford’s 56,000 unionized factory workers are unaffected. Some workers will also lose their jobs in India.
Executive Chairman Bill Ford and CEO Jim Farley said in the email that Ford will offer workers benefits and significant help in finding new jobs.
They wrote that Ford has an opportunity to lead the new era of connected and electric vehicles.
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“Building on that future has required changing and redesigning virtually every aspect of how we work for more than a century,” the email reads. “It means reallocating resources and addressing our cost structure, which is uncompetitive compared to traditional and emerging companies.”
Farley and Ford wrote that they examined each team’s shift work to decide where cuts would be made. The company found that its cost structure was not competitive with General Motors, Stellantis and Tesla.
“We’re eliminating work and organizing and simplifying functions across the company,” they wrote in the email.
Farley has repeatedly said the company is overstaffed and needs to cut costs so it can move faster in the transition to electric vehicles.
The company has already undergone restructuring in Europe, Asia and India.
https://www.king5.com/article/news/nation-world/ford-cutting-white-collar-jobs/507-b5d91fa9-98f0-4d2d-992f-dc1aa284bb4a Ford layoffs: 3,000 jobs cut to lower costs amid electric switch