Ford Motor Confirms Layoffs Affecting Engineers in US, Canada

Ford Motor Co. is slashing jobs in the U.S. and Canada as part of a broad cost-cutting strategy. The affected employees, primarily engineers, were informed this week with a reported estimate of about 1,000 job cuts.

Detroit Free Press reported that Ford Motor is terminating salaried workers in the said regions, and it will wrap up this round of job cuts before this day ends. Other publications specifically mentioned that most of the affected employees are engineers in all departments of its business, including commercial operations, gasoline-powered or internal combustion-engine vehicle units, and electric vehicles and technology.

"Notifications are largely finished," the spokesperson of Ford Motor, T.R. Reid, told the Free Press. "People who were affected are being provided with severance benefits and assistance in finding new opportunities outside the company."

Moreover, Reid previously said that some contract workers were informed last week that their assignments related to Ford Motor had ended. He declined to confirm the total number of white-collar jobs and contract workers that the automaker cut, but a source who has knowledge of the matter said that an estimated number of 1,000 salaried employees are affected, and most of them are engineers from Model e, Ford Pro, and Ford Blue units.

The Dearborn, Michigan-based automaker and its rivals have been reducing their workforce, and all of them said this is to trim the costs of their operations. They explained that this is needed since they are investing billions to transition from gas-powered to electric vehicles.

Reuters further reported that this decision is part of Ford Motor's plan to discontinue its unprofitable locations. It also comes after the company announced last month that it expects its restructuring to incur charges between $1.5 billion and $2 billion this year.

"This is related to the Ford+ growth plan we introduced in 2021," the company said via an email to the publication. "Delivering our Ford+ plan for growth and value creation includes increasing quality, lowering costs, investing in our priorities, and adjusting staffing to match the capabilities we need."

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