Ford Motor Co. on Monday informed certain salaried employees in the United States and Canada about a round of layoffs that will include engineering roles in both internal combustion engine vehicle and electric vehicle business units, The Detroit News has learned.
Employees were informed of the job cuts in small-group meetings Monday afternoon, according to people familiar with the matter. The cuts mark the latest effort by the Dearborn automaker to align skills and talent with different priorities and needs as it attempts to execute its growth plan and navigate the costly transition to electric, digitally-connected vehicles.
Employees included in this round of layoffs will be notified individually over the next couple of days. Ford's salaried workforce in divisions affected by the cuts were asked to work remotely through the rest of the week as the layoffs are being carried out.
The cuts will affect all three of Ford's business units: Ford Blue, which is focused on internal combustion engine and hybrid vehicles; Ford Model, which is dedicated to EVs and software; and Ford Pro, which serves as a sales and distribution unit for fleet customers. The cuts are focused, though not exclusively, on roles related to engineering; product development work for Ford Pro's vehicles is handled by the other two units.
Ford is investing $50 billion in electrification through 2026 as part of a growth plan dubbed Ford+. Under CEO Jim Farley, the company separated into the three business units that reflect different customer segments. By 2026, Ford aims to hit a companywide earnings margin of 10%, an 8% margin in its EV business, and to be producing 2 million EVs annually.
"With the Ford+ plan, we've characterized some new priorities and some very specific priorities and ambitions for the business," Ford spokesman T.R. Reid said. "That has implications for the skills that we require, and how they're deployed. We're going to manage the business accordingly, in a more ongoing way. The effect on some of our colleagues is unfortunate, but the approach generally is right and necessary."
Farley has repeatedly said publicly that the ongoing shift within the company will require realigning talent. Some longtime Ford employees, for example, moved over to the EV business unit alongside a score of new hires from Silicon Valley. At the same time, the company has undertaken previous rounds of job cuts, including some 3,000 positions in North America less than a year ago. Job cuts also are underway in Europe and China.
The cuts that were explained to employees Monday follow actions Ford took at the end of last week, when it alerted some salaried staff who are employed by outside agencies that their contracts were not being renewed.
Ford has declined to comment on the number of positions being cut.
Ford executives have said the company has a roughly $7 billion cost disadvantage compared to some of its competitors, a gap it has been working to address.
Meanwhile, other automakers also have taken actions to reduce their workforces amid the costly shift to electric vehicles and a murky macroeconomic outlook. About 5,000 salaried workers at General Motors Co., for example, signed up for buyouts earlier this year, averting layoffs. The Detroit automaker cut about 500 executive-level and salaried jobs as well.
jgrzelewski@detroitnews.com
Ford informs salaried workers of pending layoffs - Detroit News
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