Ford Motor Co. is cutting about 3,000 white-collar jobs as it attempts to lower costs and make the transition from internal combustion to electric vehicles.
Leaders of the Dearborn, Michigan, automaker made the announcement on Monday in a companywide email, saying that 2,000 full-time salaried workers would be let go along with another 1,000 contract workers.
The cuts represent about 6 per cent of the 31,000 full-time salaried work force in the US and Canada. Ford’s 56,000 union factory workers are not affected. Some workers also will lose jobs in India.
Executive Chairman Bill Ford and CEO Jim Farley said in the email that Ford will provide benefits and significant help for the workers to find new jobs.
They wrote that Ford has a chance to lead in the new era of connected and electric vehicles.
“Building on this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” the email said. “It means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new companies.”
Farley and Ford wrote that they examined each team’s shifting work to decide where cuts would be made. The company determined that its cost structure wasn’t competitive with General Motors, Stellantis and Tesla.
“We are eliminating work, as well as reorganising and simplifying functions throughout the business,” they wrote in the email.
Farley has said repeatedly that the company has too many people and needs to trim costs so it can move faster as it transitions to electric vehicles.
The company already has restructured in Europe, Asia and India.