Ford to Lay Off Workers as it Focuses on Electric Vehicles
Ford is anticipating layoffs of engineers and other employees in North America as it transitions towards producing more electric vehicles, aligning with its Ford+ growth plan introduced in 2021. The specific number of employees affected has not been confirmed by the company.
The decision to adjust staffing aligns with Ford’s strategy to prioritize focused goals, ambitions, quality improvement, and cost reduction, according to Ford spokesperson T.R. Reid.
While Ford has mentioned hiring in certain areas, it remains unclear if these layoffs will result in an overall reduction in the company’s workforce in the United States and Canada.
Under the Ford+ plan, the company established three main operating units: Ford Blue for internal combustion-powered vehicles, Ford Model E for electric vehicles, and Ford Pro dedicated to commercial vehicles.
Ford CEO Jim Farley also emphasized a focus on fewer, but more profitable, market segments and the development of digital products for customers. Cost reduction is a crucial aspect of the plan alongside profit growth.
Despite projecting a $3 billion loss on electric vehicle sales in 2021, Ford expects to achieve its profit targets of $9 billion to $11 billion for the year and anticipates future profitability in the electric vehicle sector.
