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Ford will cut jobs in the US and Canada in bid to reduce costs

Ford will cut jobs in the US and Canada in bid to reduce costs

Ford Motor Co. said on Tuesday it will begin layoffs this week, affecting mainly engineering jobs in the United States and Canada, as part of the Detroit automaker’s move to exit unprofitable locations and trim its workforce.

The news comes after the company said in May that it expects to undertake restructuring costs of between $1.5 billion and $2 billion in 2023.

The automaker did not specify the number of jobs that will be affected by the move. “People affected by the changes will be offered severance pay, benefitssaid Ford, adding that the layoffs are not limited to engineering-related positions.

This is related to the Ford+ growth plan that we presented in 2021″, the company said in an emailed statement.

Delivering on the plan includes adjusting staffing to match focused priorities and ambitions while increasing quality and reducing costs”, he added.

CNBC reported Monday that the job cuts are expected to affect all three business units of Ford: Ford Blue, Model e and Ford Pro. The Wall Street Journal reported last week that the automaker is preparing for a new round of layoffs for its salaried workers in the United States.

In February, Ford also detailed plans to eliminate 3,800 product development and management positions in Europe over the next three years.

Although rising prices and strong demand for new vehicles have helped automakers weather inflationary headwinds to some extent, the high cost of raw materials remains a challenge.

Source: Gestion