Ford is set to cut its workforce by up to 8,000 in an effort to increase efficiency and focus on electric vehicles, Bloomberg News reported, citing internal company sources.
Details regarding the cuts have not been disclosed and are subject to change and are likely to start this summer.
A Ford spokesman declined to comment on this. However, it has scheduled a press conference to announce an annual electric vehicle production target of 600,000 vehicles by 2023 and more than 2 million by the end of 2026.
“To realize our Ford+ transformation and lead this exciting and disruptive new era of electric and connected vehicles, we remain focused on reshaping our work and modernizing our organization across all automotive business units and across the company,” said Ford spokesman T.R. Reid in a statement.
“As part of this, we have set clear targets for lowering our cost structure to ensure we are lean and fully competitive with the best in the industry,” he added.
In March, Ford increased spending on electric vehicles through 2026 to $50 billion from its previous target of $30 billion, and reorganized its operations into separate units focused on electric vehicles and gasoline-powered vehicles with each Ford Model e. and Ford Blue.
The Dearborn, Michigan-based company also said at the time that its electric vehicle business would not be profitable until next-generation models go into production in 2025.
Ford Chief Executive Jim Farley said in February at the Wolfe Research conference that the US automaker’s opportunity to cut costs in its internal combustion engine operations is on the structural side. “We have too many people,” he said.
“This management team strongly believes that our portfolio of ICE and BEVs is low-income,” he added, referring to battery electric vehicles, or BEVs.
