San Francisco, Aug 23 : The US-based auto manufacturer Ford Motor has reportedly confirmed that it will be laying off 3,000 employees as well as contract employees, with the cuts primarily affected by staff in the US, Canada and India.According to The Wall Street Journal, Ford sent an internal email to employees informing them that it will begin to notify affected workers in the agency and salaried sector the week of of the reductions.
Around 22,000 of the planned cuts will be salaried jobs in Dearborn, Michigan.The remaining 1,000 employees work in contract jobs with outside agencies, the company said.
The email, which was signed by Executive Chairman Bill Ford and Chief Executive Jim Farley, said Ford is changing its approach to business and redistributing resources to adopt technological advancements that were not prior to being a core part of its operations, like creating advanced software for its vehicles.
The job cuts take effect 1st September A spokesman confirmed the news.
Farley has stated recently she believes that Ford is overstaffed and that the current workforce isn’t equipped with the skills required to move to a variety of electric, software-powered vehicles.
He has stated that he is aiming to reduce 3 billion in annual expenses by 2026 , aiming to achieve 10 percent pretax profit margin at that point which is up from 7.3 percent in the previous year.
A number of newspapers have reported in July that layoffs are planned for white-collar employees as part of an overall restructuring plan to increase the firm’s attention to electric cars as well as the batteries they power.
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