Ford cuts 580 US salaried employees and contractors as it restructures to focus on electric vehicles 2022-04-27 22:10:00

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Ford CEO Jim Farley at the company’s plant in Dearborn, Michigan, where it is building an electric F-150 Lightning, on April 26, 2022.

CNBC | Michael Wayland

Detroit – Ford Motor It will cut 580 US salaried employees and dealership workers as part of its ongoing Ford+ turnaround plan, the company confirmed Wednesday night.

The cuts include nearly 350 salaries and 230 agencies, according to an emailed statement. The cuts occurred largely in engineering, as the Detroit automaker focuses on vehicles with a traditional interior Combustion engines for electric cars and trucks It can require different skill sets.

“We continue to align employees around the core 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 future business needs and plans.”

The automaker said affected employees and agencies for non-Ford employees were notified on Wednesday — the same day the automaker reported net loss of $3.1 billion in the first quarter, This is largely due to the loss in value of the 12% stake in the electric vehicle startup Rivian Auto.

The cuts, which will be complete by the end of the week, come less than two months after Ford announced they would be ending Reorganization of operations To separate the work of electric and internal combustion engines into different units within an automaker.

Ford said eligible employees will receive ongoing and termination benefits equivalent to nine months of service-based pay and “career shift services.” A company spokeswoman declined to estimate how much the packages would cost the automaker.

The staffing cuts, first reported by the Detroit Free Press, are only about 1% of the nearly 31,000 paid employees in the United States. As of the end of last year, Ford had 186,769 employees globally, with 90,873, or 48.7%, hourly and salaried workers in the United States.

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