Ford cuts 580 U.S. salaried, company employees because it restructures for EVs

Ford CEO Jim Farley on the firm’s Dearborn, Michigan, plant the place it is constructing the electrical F-150 Lightning on April 26, 2022.

CNBC | Michael Wayland

DETROIT – Ford Motor is slicing 580 U.S. salaried workers and company employees as a part of its ongoing Ford+ turnaround plan, the corporate confirmed Wednesday night time.

The cuts embody roughly 350 salaried and 230 company positions, in keeping with an emailed assertion. The reductions occurred largely in engineering, because the Detroit automaker pivots from autos with conventional inside combustion engines to electrical automobiles and vehicles that may require completely different talent units.

“We proceed to align staffing across the vital expertise wanted to ship our merchandise, companies, and the Ford+ plan,” the corporate stated. “As a part of the continuing administration of our enterprise, we are going to proceed to align our staffing to satisfy our future enterprise wants and plans.”

The automaker stated impacted workers and the companies for the non-Ford workers have been notified Wednesday – the identical day the automaker reported a web lack of $3.1 billion within the first quarter, largely due the loss in worth of a 12% stake in EV start-up Rivian Automotive.

The cuts, which shall be accomplished by the tip of the week, come lower than two months after Ford stated it might reorganize operations to separate its electrical and inside combustion engine companies into completely different items inside the automaker.

Ford stated eligible workers will obtain advantages continuation and severance equal to as much as 9 months of pay based mostly on service and “profession transition companies.” A spokeswoman declined to estimate how a lot the packages will value the automaker.

The worker cuts, which have been first reported by the Detroit Free Press, are solely about 1% of the corporate’s roughly 31,000 U.S. salaried workforce. As of the tip of final yr, Ford had 186,769 workers globally, with 90,873, or 48.7%, hourly and salaried employees positioned within the U.S.

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