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Ford will cut 3,000 positions, as it transitions to electric vehicles

  • The reorganisation affects 2,000 salaried and 1,000 contract jobs.
  • Traditional car companies have sped up production of their electric models in response to competition from Tesla.
  • Ford said in March that it planned to save $3 billion a year by spending less on traditional cars.

Ford, a big US automaker, said Monday that it is cutting about 3,000 jobs, mostly in North America and India, as the company tries to move faster toward electric cars.

In the past few years, traditional car companies have sped up production of their electric models in response to competition from Tesla and other start-ups.

A spokesman told that the reorganisation affects 2,000 salaried jobs and 1,000 contract jobs, mostly in the United States, Canada, and India. It does not affect factory workers, though.

In July, the US media said that Ford, which has about 182,000 employees around the world, was getting ready to cut several thousand jobs.

“We absolutely have too many people in certain places, no doubt about it,” president and CEO Jim Farley said in a conference call in late July.

“We have skills that don’t work anymore… and we have jobs that need to change,” he said, without specifying the number of positions to be eliminated.

The automaker has said in the past that it wants to spend $50 billion on making electric cars by 2026.

Ford said in March that it planned to save up to $3 billion a year by spending less on traditional cars.

The job cuts announced Monday are “consistent with what we have been describing for quite some time” and are intended at making Ford “more efficient,” the spokesman said.

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