Ford Confirms Official Layoff of 3,000 Employees... Accelerating Transition to Electric Vehicles

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. Ford Motor Company announced on the 22nd (local time) that it will lay off about 3,000 office and contract employees.

The Wall Street Journal (WSJ) reported, citing an internal email sent to employees on the day, that the company will begin notifying the affected employees of the layoffs starting this week. The workforce reduction mainly targets employees in the United States, Canada, and India. The company stated that about 2,000 employees are from the Dearborn plant in Michigan, and about 1,000 are contract workers from external agencies.

This workforce reduction is part of Ford's transition to electric vehicles and electric vehicle batteries. Earlier major foreign media reported that Ford could lay off up to 8,000 employees, mainly in the internal combustion engine division, as a cost-cutting measure to expand investment in electric vehicles.

Bill Ford, Ford Chairman, and Jim Farley, CEO, mentioned in an email on the day that Ford is changing its operations and reallocating support as it embraces new technologies that were not part of its core business in the past, such as advanced vehicle software development. Ford's management stated, "To build the future, we must change and restructure virtually every aspect that has been operated for over a century." The company confirmed that the layoffs will take effect from September 1.

Recently, CEO Farley pointed out, "Ford has too many employees, and the existing workforce lacks the expertise needed for the transition to an electric software-centered vehicle portfolio." Ford plans to invest $50 billion in electric vehicle-related development by 2026 and aims for global sales of 2 million vehicles.

Meanwhile, following this news, Ford Motor Company was trading down 5.23% compared to the previous close in the New York Stock Exchange afternoon session.