Highlight
- Ford sent employees an internal email saying it would begin reporting cuts
- Nearly 2,000 of the targeted cuts will be salaried jobs in Dearborn, Michigan
- Remaining 1,000 employees are working on contractual positions with external agencies
US-based carmaker Ford Motor has reportedly confirmed that it is laying off around 3,000 employees and contract workers, with the cuts mainly affecting employees in the US, Canada and India.
According to The Wall Street Journal, Ford sent employees an internal email saying it would begin notifying affected salaried and agency employees about the cuts this week.
Of the targeted cuts in Dearborn, Michigan, about 2,000 will be salaried jobs. The remaining 1,000 employees are working in contract positions with external agencies, the company said.
The email, signed by Executive Chairman Bill Ford and Chief Executive Jim Farley, said Ford is changing the way it operates and redeploying resources as it adopts new technologies that previously weren’t core to its operations. such as developing advanced software for its vehicles.
A spokesman said the job cuts are effective September 1.
Farley recently said that Ford has too many employees, and the current workforce doesn’t have the expertise needed to transition to a portfolio of electric, software-filled vehicles.
He has said he aims to cut annual costs by $3 billion by 2026, which by then will reach a 10 percent pretax profit margin, up from 7.3 percent last year.
Several media outlets reported in July that layoffs for white-collar employees were coming as part of a broader restructuring to intensify the car company’s focus on electric vehicles and the batteries that power them.
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