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Ford cuts 580 U.S. salaried, agency workers as it restructures for EVs

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Ford CEO Jim Farley, Dearborn Michigan plant, where the F-150 Lightning will be built on April 26th 2022.

Michael Wayland| Michael Wayland

DETROIT – Ford MotorAccording to the Ford+ plan, 580 salaried and agency employees in America will be laid off as part of the ongoing turnaround. This was confirmed by Ford Wednesday night.

An email announcement stated that the reductions include about 350 salaried employees and 230 agency staff positions. According to an emailed statement, the Detroit automaker made significant reductions in engineering as it shifts away traditional internal vehicle designs. combustion engines to electric cars and trucksThis can take different skills.

The company stated that it continues to coordinate staffing to ensure the delivery of Ford+ plans, products and services. As part of the continuous management of our company, we will continue aligning our staffing in order to meet future business plans.

The automaker said impacted employees and the agencies for the non-Ford employees were notified Wednesday – the same day the automaker reported a net loss of $3.1 billion in the first quarter,This was largely due to the loss of value from a stake of 12% in an EV start up Rivian Automotive.

Ford had promised that the cuts would be complete by the end the week. reorganize operationsto seperate its internal combustion engine and electric businesses within the automaker.

Ford stated that eligible employees would receive continuation and severance benefits equal to at least nine months’ pay, based on their service or “career transition services,” and will be entitled to benefit continuation and severance. The automaker’s spokesperson declined to provide an estimated cost for the package.

Detroit Free Press reported that the reductions in employee numbers represent only 1% or less of 31,000 U.S. salaried employees. Ford employed 186,769 people globally as of December 31, 2013. There were 90,873, which is 48.7% of hourly- and salaried employees located in the U.S.

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