Ford’s increased focus on electric vehicles is already leaving its mark on the company’s workforce. The Detroit automaker just confirmed that it would lay off 3,000 workers, including those working white-collar jobs and those on contract with outside agencies. The move is prompted by the company’s transition to producing more electric cars in the future.
According to a report by The Wall Street Journal, the cuts were announced in an internal mail sent out on Monday. The automaker will notify the affected employees by the end of the week.
The majority of the layoffs will take place in the U.S., Canada, and India. The cuts will affect 2,000 salaried positions and 1,000 contracted workers that work for Ford through an outside agency.
Reportedly, the automaker hopes the layoffs will allow the company to redirect resources into developing EVs and accompanying technology.
“Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” said Executive Chairman Bill Ford and Chief Executive Jim Farley in the internal mail.
Ford has been bullish in attempts to position itself as one of the top EV makers in the world. The company intends to pour $50 billion into the electric cars business in the next four years while aiming to sell two million EVs by then. It also split into two divisions, with one working on electric cars and the other one on traditional cars.