Ford CEO Jim Farley at the company’s plant in Dearborn, Michigan, where it is building the electric F-150 Lightning on April 26, 2022.
CNBC | miguel wayland
DETROIT- ford engine is cutting 580 U.S. salaried employees and agency workers as part of its ongoing Ford+ turnaround plan, the company confirmed late Wednesday.
The cuts include approximately 350 salaried and 230 agency positions, according to an emailed statement. The reductions have largely occurred in engineering, as the Detroit automaker moves away from vehicles with traditional internal systems. combustion engines to electric cars and trucks which may require different skill sets.
“We continue to align people around the critical skills needed to deliver our products, services and the Ford+ plan,” the company said. “As part of the ongoing management of our business, we will continue to align our staff to meet our needs and future business plans.”
The automaker said affected employees and agencies for non-Ford employees were notified Wednesday, the same day the automaker reported a net loss of $3.1 billion in the first quarter, largely due to the loss in value of a 12% stake in the EV startup Rivian Automotive.
The cuts, due to be completed by the end of the week, come less than two months after Ford said it reorganize operations separate its electric and internal combustion engine businesses into different units within the automaker.
Ford said eligible employees will receive continuation benefits and severance pay equivalent to up to nine months of pay-for-service and “career transition services.” A spokeswoman declined to estimate how much the packages will cost the automaker.
The employee cuts, which were first reported by the Detroit Free Press, are only about 1% of the company’s roughly 31,000 U.S. salaried workers. At the end of last year, Ford had 186,769 employees worldwide. , with 90,873, or 48.7%, hourly and salaried workers located in the US.