Ford conducts engineering layoffs in U.S. and Canada

DETROIT — Ford Motor confirmed Monday it will carry out layoffs this week, primarily affecting engineering jobs in the U.S. and Canada, as the automaker seeks billions in cost-cutting measures as it restructures its business operations.

The job cuts are expected to affect all three of Ford’s business units: Ford Blue, its traditional internal combustion engine operations; Model e, its electric vehicle unit; and Ford Pro, its fleet service operations.

A company spokesperson declined to provide how many employees will be affected. In Ford’s most recent quarterly filing in May, the automaker said it expected to incur total charges in 2023 that range between $1.5 billion and $2 billion, “primarily attributable to employee separations and supplier settlements.”

That forecast compared to $2 billion and $608 million in 2021 and 2022, respectively, related to similar actions.

Ford has been restructuring its operations for several years under its Ford+ plan, led by CEO Jim Farley. The automaker cut 3,000 workers in North America in August and has more recently conducted 3,800 layoffs in Europe.

“We continue to review our global businesses and may take additional restructuring actions where a path to sustained profitability is not feasible when considering the capital allocation required for those businesses,” Ford said in its first-quarter filing.

Farley has said the company has a roughly $7 billion cost disadvantage compared with some of its competitors, which it’s attempting to address through efficiency gains and job reductions.

Ford’s employee headcount last year dropped about 10,000 people to 173,000 globally, according to a separate public filing.

“Delivering our Ford+ plan for growth and value creation includes increasing quality, lowering costs, investing in our priorities, and adjusting staffing to match the capabilities we need,” the company said in an emailed statement. “People affected by the changes will be offered severance pay, benefits and significant help to find new career opportunities.”

The most recent layoffs were first reported late last week. At that time, some contractors were notified they would no longer be working with the company.

Leaders whose teams are affected were notified this afternoon, and employees are expected to be notified through midweek, according to people familiar with the company’s plans. The company has instructed units affected by the cuts to work remotely this week as the layoffs are conducted, the people confirmed.

Ford is not the only automaker to reduce its headcount, as it realigns its business to focus more on electric vehicles.

Crosstown rival General Motors has taken some layoff actions and conducted an employee buyout program that cost it $875 million during the first quarter.

Jeep maker Stellantis confirmed in April it was offering voluntary buyouts to about 33,500 U.S. employees, as the global automaker attempts to cut costs and headcount.