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Ford CEO Jim Farley at the automaker’s battery lab in suburban Detroit, announcing a new $3.5 billion electric vehicle battery plant in the state to produce lithium iron phosphate batteries, February 13, 2023.
Michael Weiland/CNBC
Detroit – Ford Motor It confirmed Monday that it will implement layoffs this week, primarily affecting engineering jobs in the United States and Canada, as the automaker seeks billions in cost-cutting measures as it restructures its business operations.
The job cuts are expected to affect all three of Ford’s business units: Ford Blue, its traditional internal combustion engine operations; Model E, its electric car unit; and Ford Pro, its fleet servicing operations.
A company spokesperson declined to provide how many employees would be affected. In Ford’s most recent quarterly filing in May, the automaker said it expects to incur total charges in 2023 of between $1.5 billion and $2 billion, “primarily attributable to employee dismissals and supplier settlements.”
Compared to $2 billion and $608 million in 2021 and 2022, respectively, related to similar measures.
Ford has been restructuring its operations for several years under the Ford+ plan, led by CEO Jim Farley. The automaker cut 3,000 workers in North America in August and recently laid off 3,800 workers in Europe.
Ford He said in the filing in the first quarter.
Farley said the company has a cost disadvantage of about $7 billion compared to some of its competitors, which it’s trying to address through efficiency gains and job cuts.
Ford’s headcount last year fell by about 10,000 people to 173,000 globally, according to a separate public filing.
“Delivering Ford+’s plan for growth and value creation includes increasing quality, reducing costs, investing in our priorities, and adjusting staff to the capabilities we need,” the company said in an emailed statement. “People affected by the changes will be offered severance pay, significant benefits and assistance in finding new job opportunities.”
The latest layoffs were first reported late last week. At that time, some contractors were notified that they would no longer work with the company.
Leaders whose teams were affected were notified this afternoon, and employees are expected to be notified during the middle of the week, according to people familiar with the company’s plans. People confirmed that the company instructed units affected by the cuts to work remotely this week as layoffs are in place.
Ford isn’t the only automaker to cut staff, as it is realigning its business to focus more on electric vehicles.
Crosstown competitor general motors It took some layoffs and ran an employee buyout program that cost it $875 million in the first quarter.
pocket maker excellent It confirmed in April that it was offering voluntary buyouts to about 33,500 US employees, as the global automaker tries to cut costs and headcount.
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