Ford cuts 580 U.S. agency workers due to restructuring for electric vehicles
Ford CEO Jim Farley at the company’s plant in Dearborn, Michigan, where the electric F-150 Lightning is made, on April 26, 2022.
CNNBC | Michael Wayland
DETROIT. Ford Motor is cutting 580 full-time employees and agency workers in the US as part of Ford+’s ongoing reorganization plan, the company confirmed late Wednesday.
The cuts include approximately 350 staff and 230 agency positions, according to the electronic statement. The cuts have come primarily in mechanical engineering as the Detroit automaker transitions from vehicles with traditional internal combustion engines to electric vehicles and trucks, which may require a variety of skills.
“We continue to align workforce with critical skills needed to deliver our products, services and the Ford+ plan,” the company said in a statement. “As part of the ongoing management of our business, we will continue to align our staffing to align with our future business needs and plans.”
The automaker said affected employees and agencies for non-Ford employees were notified Wednesday — the same day the automaker posted a net loss of $3.1 billion in the first quarter, mostly due to a 12% loss in value. launch EV shares. up Rivian Automotive.
The cuts, which will be completed by the end of the week, come less than two months after Ford said it was reorganizing operations to separate its electric and combustion engine divisions into different divisions within the automaker.
Ford said eligible employees would receive a continuation and severance pay of up to nine months of pay based on service and “career transition services.” The spokeswoman declined to estimate how much the packages would cost the automaker.
The job cuts, first reported by the Detroit Free Press, are only about 1% of the company’s roughly 31,000 U.S. full-time employees. As of the end of last year, Ford had 186,769 employees worldwide, of which 90,873, or 48.7%, of hourly and salaried employees were located in the United States.