Ford Motor has announced plans to cut 3,000 payroll and contract jobs, mainly in North America and India, as the company moves to develop software-driven electric vehicles.
Ford’s workforce primarily supports a traditional range of combustion technology products. According to Ford CEO Jim Farley, not enough Ford employees have the skills needed as the company switches to electric vehicles and digital services.
“We are eliminating work, as well as reorganizing and simplifying functions throughout the business. You will hear more specifics from the leaders of your area of the business later this week,” Farley and Ford Chairman Bill Ford wrote in a joint email.
In the email to employees, Farley and Ford claimed the company’s cost structure “is uncompetitive versus traditional and new competitors.”
While the company has begun to separate its business into the electric, combustion and commercial vehicle operations, Farley hinted at “cost reduction will happen” in the combustion operations. However, the company stated on Monday that the staff cuts would affect all parts of the business.