Ford is set to lay off a number of employees, primarily engineers in North America, as it accelerates its transition to producing more electric vehicles. The company, however, has not disclosed the exact number of employees affected.
“This is part of our Ford+ growth plan introduced in 2021, which we have been progressively implementing over the past year,” stated Ford spokesman T.R. Reid in an email. “As we execute this plan, we are aligning our workforce to focus on key priorities and goals, aiming to enhance quality and reduce costs.”
While Ford has emphasized hiring in certain areas, it remains unclear whether these layoffs will lead to an overall reduction in its workforce across the United States and Canada.
Under the Ford+ strategy launched in 2021, the company reorganized into three main operating units: Ford Blue for internal combustion vehicles, Ford Model E for electric vehicles, and Ford Pro for commercial vehicles. CEO Jim Farley also announced a strategic shift towards fewer, more profitable market segments and the development of digital products for customers, alongside efforts to boost profitability through cost reductions.
Despite projecting a $3 billion loss this year on electric vehicle sales, Ford remains optimistic about meeting its annual profit targets of $9 billion to $11 billion, with expectations to achieve profitability from electric vehicles in the near future.
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