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Ford CEO Jim Farley at the company’s Dearborn, Michigan, plant where it builds the electric F-150 Lightning on April 26, 2022.
CNBC | Michael Wayland
DETROIT – Ford Motor is cutting 580 US salaried employees and agency workers as part of its ongoing Ford+ turnaround plan, the company confirmed Wednesday night.
The cuts include about 350 payroll and 230 agency positions, according to an emailed statement. The cuts occurred in engineering, as the Detroit automaker pivots from vehicles with traditional internal combustion engines to electric cars and trucks that may require a different skill set.
“We will continue to align staffing with the critical skills needed to deliver our Ford+ products, services and plans,” the company said. “As part of the ongoing management of our business, we will continue to align our personnel to meet our future business needs and plans.”
The automaker said affected employees and Ford’s non-employee agencies 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 of of the value of a 12% stake in starting EV- up Rivian Automotive.
The cuts, which will be completed over the weekend, come less than two months after Ford said it would restructure operations to separate its electric and internal combustion engine businesses into different units within the automaker. .
Ford said eligible employees will receive continuation benefits and severance equal to up to nine months’ pay based on service and “career transition services.” A spokesman declined to estimate how much the packages will cost the automaker.
The employee cuts, first reported by the Detroit Free Press, represent only about 1% of the company’s approximately 31,000 US salaried workforce. At the end of last year, Ford had 186,769 employees worldwide, with 90,873, or 48.7%, of hourly and salaried workers located in the US
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