Workers to be let go will be 'offered severance pay, benefits and significant help to find new career opportunities'
Ford Motor will carry out further layoffs this week, primarily affecting engineering jobs in the U.S. and Canada as it restructures its business operations, according to a report.
The employer did not specify the number of workers to be let go.
However, 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,” reported CNBC, citing the company’s most recent quarterly filing in May.
Ford recorded charges of $2 billion and $608 million in 2021 and 2022, respectively, for similar actions, it said in the 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 to CNBC. “People affected by the changes will be offered severance pay, benefits and significant help to find new career opportunities.”
This week’s layoffs 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, according to the CNBC report.
Meanwhile, Ford Australia will lay off 400 employees in September as the automaker seeks to "improve efficiency," according to reports.
The automaker cut 3,000 workers in North America in August as it anticipated a recession. The company 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.
Other employers – including McDonald’s, Accenture, Google and Amazon – have also announced plans to cut their headcount this year.
