Automaker Ford has confirmed that it will begin another round of layoffs impacting jobs in the US and Canada. The company did not disclose the number of employees who would lose their jobs, but said the actions are related to its growth plan introduced in 2021. Ford has been increasingly implementing the plan over the past year, which includes adjusting staffing to match focused priorities and ambitions while raising quality and lowering costs. The automaker announced that people affected by the changes will be offered severance pay, benefits, and significant help to find new career opportunities.
In May, the Detroit manufacturer said it anticipated restructuring charges between $1.5 billion and $2 billion over 2023. Earlier this year, the automaker also announced a 3,800-person reduction in its European workforce. The company has been hit with a string of product recalls involving millions of vehicles, from trucks and SUVs with missing information in the owners’ manuals to vehicles susceptible to engine fires, faulty seatbelts, and airbags.
Despite these setbacks, Ford reported higher truck sales in May and the exportation of the company’s signature electric F-150 Lightning pickup truck to Norway. Shares of Ford are up across the board, rising roughly 22% since the beginning of the year.
Ford CEO Jim Farley announced earlier this year that the company will be partnering with Amperex Technology to create an electric-vehicle battery plant in Marshall, Michigan. The company also received $9.2 billion from the Department of Energy for its venture. On the other hand, UAW President rallied members for potential strikes at Ford, GM, and Stellantis.
Overall, Ford has faced a mixed year with layoffs, recalls, and restructuring charges, but has also seen success in higher truck sales and the exportation of its electric F-150 Lightning pickup truck. The company's shares have also risen since the beginning of the year.