Ford CEO Jim Farley at the company’s plant in Dearborn, Michigan, where he produced the electric F-150 Lightning on April 26, 2022.
CNBC | Michael Wayland
DETROIT – Ford Motor is cutting 580 U.S. and agency employees as part of its ongoing Ford + recovery plan, the company confirmed Wednesday night.
The redundancies include approximately 350 jobs and 230 agency positions, according to a statement sent by email. The decline has been largely in engineering, as the Detroit automaker is shifting from vehicles with traditional internal combustion engines to electric cars and trucks that may require different skills.
“We continue to align staff with the critical skills needed to deliver our products, services and the Ford + plan,” the company said. “As part of the ongoing management of our business, we will continue to line up our staff to meet our future business needs and plans.”
The carmaker said affected employees and non-Ford employees were notified on Wednesday, the same day the carmaker reported a net loss of $ 3.1 billion in the first quarter, largely due to the loss of value. 12% stake in EV start-up Rivian Automotive.
The cuts, which will be completed by the end of the week, come less than two months after Ford said it would reorganize operations to split its electric and internal combustion engine business into various units within the automaker.
Ford said eligible employees will receive continued benefits and compensation equal to up to nine months of pay based on service and “career transition services.” A spokeswoman declined to say how much the carmaker’s packages would cost.
The layoffs, first reported by the Detroit Free Press, are only about 1 percent of the company’s approximately 31,000 employees. At the end of last year, Ford had 186,769 employees worldwide, including 90,873, or 48.7%, working hours and hours in the United States.
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