Ford Motor Co. (F) says it is cutting 580 U.S. salaried employees and contract positions as it
restructures to focus on the development of electric vehicles.
The job cuts include 350 salaried and 230 contract positions, according to a statement from the
Detroit automaker. The reductions occurred largely in engineering, as Ford pivots from vehicles
with traditional internal combustion engines to electric cars and trucks that can require different
skill sets.
The automaker said impacted employees have already been notified that their position has
been eliminated.
Earlier this week, Ford reported a net loss of $3.1 billion U.S. in the first quarter, largely due the
loss in value of a 12% stake in electric vehicle start-up Rivian Automotive (RIVN).
The job cuts, which will be completed by the end of this 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.
The job cuts are only about 1% of the company’s roughly 31,000 U.S. salaried workforce. As of
the end of last year, Ford had 186,769 employees worldwide, with 90,873, or 48.7%, hourly and
salaried workers located in America.
Year to date, Ford’s stock is down 32% at $14.85 U.S. a share.