(Detroit) Ford Motor Co. is cutting about 3,000 white-collar jobs as the automaker tries to cut costs and switch from internal combustion vehicles to electric vehicles.
Posted at 1:12 p.m.
Executives at the Dearborn, Mich., automaker made the announcement Monday in an internal company email, saying 2,000 full-time workers would be laid off along with 1,000 other contract workers.
The cuts represent about 6% of the 31,000 full-time workers in the United States and Canada. Ford’s 56,000 unionized workers are not affected. Some workers will also lose their jobs in India.
Executive Chairman Bill Ford and Chief Executive Jim Farley say in the email that Ford will provide benefits and significant assistance to workers finding new jobs.
They add that Ford has a chance to lead the new era of connected and electric vehicles.
“Building on this future requires changing and reshaping virtually every aspect of how we have operated for over a century. This means redeploying resources and tackling our cost structure, which is not competitive with traditional and new businesses. »
MM. Farley and Ford add that they looked at each team’s work to decide where the cuts would be made. The company determined that its cost structure was not competitive with General Motors, Stellantis and Tesla.
“We are reorganizing and simplifying functions across the company,” they write.
Mr. Farley has repeatedly said that the company has too many employees and needs to cut costs to accelerate its transition to electric vehicles.
The company has already restructured in Europe, Asia and India.