Ford cuts 580 US employees on salaries and contracts as it restructures

Ford cuts 580 US and agency employees as part of its current recovery plan for Ford+; the company confirmed late Wednesday.

According to an emailed statement, the cuts cover about 350 jobs and 230 agency jobs. The decline is mainly due to technology. As Detroit automakers move from vehicles with traditional internal combustion engines to electric cars and trucks. Which may require different capabilities.

“We continue to align our people with the critical skills needed to deliver our Ford+ products, services, and plans,” the company said. As part of our ongoing business management. We will continue to position our staff to meet our future business needs and plans.”

The automaker said affected employees and non-Ford employees were notified on Wednesday, the same day the automaker reported a net loss of $3.1 billion.

The cuts, which are due to be completed by the end of the week. Come less than two months after Ford announced a reorganization of its operations to split. Its electric and internal combustion engine businesses into distinct entities within the automaker. According to Ford, employees who qualify under service and “career transition services” will receive additional benefits and compensation at pay rates of up to nine months. A spokesperson would not say how much the automaker’s package would cost.

The layoffs, first reported by the Detroit Free Press. Affect only about 1 percent of the company’s roughly 31,000 employees in the United States. At the end of last year, Ford employed 186,769 people worldwide, of which 90,873, or 48.7%, working hours and wages in the US.