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- April 26, 2025 12:57 am
- California
April 29, 2022: -Ford Motor is cutting 580 U.S. salaried employees and agency workers as part of its ongoing Ford+ turnaround plan, the company confirmed Wednesday night.
According to an emailed statement, the cuts include 350 salaried and 230 agency positions. The reductions occurred mainly in engineering, as the Detroit automaker pivoted from vehicles with traditional internal combustion engines to electric cars and trucks that can require different skill sets.
“We continue to align staffing around the critical 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 staffing to meet our future business needs and plans.”
On Wednesday, the automaker said impacted employees and the agencies for the non-Ford employees were notified; the same day, the automaker reported a net loss of $3.1 billion in the first quarter, mainly due to the failure in value of a 12% stake in EV start-up Rivian Automotive.
The cuts, which will be completed by the end of the week, come less than two months after Ford said it would reorganize operations to separate its electric and internal combustion engine businesses into different units within the automaker.
Ford said eligible employees will receive benefits continuation and severance equal to nine months of pay based on service and “career transition services.” A spokeswoman declines to estimate how much the packages would cost the automaker.
The employee cuts, which the Detroit Free Press first reported, are only 1% of the company’s roughly 31,000 U.S. salaried workforce. As of the end of last year, Ford had 186,769 employees globally, with 90,873, or 48.7%, hourly and salaried workers located in the U.S.
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