Ford to lay off workers as it focuses on electric vehicles
Ford F-150 Lightning pickup trucks are shown at the Ford Rouge Electric Vehicle Center on April 26
By Peter Valdes-Dapena, CNN
New York (CNN) — As Ford shifts to producing more electric vehicles, it expects to lay off a number of employees, mostly engineers, in North America over the coming days. The company would not confirm any specific number of employees involved.
“This is related to the Ford+ growth plan we introduced in 2021 and have been increasingly implementing over the past year,” said Ford spokesman T.R. Reid in an email. “Delivering on the plan includes adjusting staffing to match focused priorities and ambitions, while raising quality and lowering costs.”
Ford has previously said it is also hiring in some areas, so it’s not clear if these layoffs will result in an overall reduction in Ford’s workforce in the United States or Canada.
As part of the so-called Ford+ plan, in 2021 the company was split into three broad operating units: Ford Blue for internal combustion-powered vehicles, Ford Model E for electric vehicles and Ford Pro focused on commercial vehicles. Ford CEO Jim Farley also announced the company would focus on fewer, but more profitable, market segments and would develop more digital products for its customers. In addition to profit growth, cost reductions are also part of the plan.
Ford executives said in March that the company will lose $3 billion this year on sales of electric vehicles but still expects to meet its profit targets of $9 billion to $11 billion for the year. It also expects to begin earning profits on electric vehicles soon.
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CNN’s Chris Isidore contributed to this story.
