Ford to cut 3,000 jobs, primarily in North America

DETROIT – Ford Motor is cutting about 3,000 jobs from its global workforce, a majority of which are in North America.

The Detroit automaker began notifying workers of the cuts on Monday, a company spokesman confirmed.

The cuts will include 2,000 salaried positions and 1,000 agency jobs in the U.S., Canada and India, Ford Chairman Bill Ford and CEO Jim Farley said in a message to employees that was obtained by CNBC.

“Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century. It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors,” reads the message.

The cuts come less than a month after Farley told analysts that “we absolutely have too many people in certain places, no doubt about it.”

The cuts are occurring across Ford’s businesses, which it split into two units earlier this year to separate its electric and internal combustion engine businesses.

“There are opportunities to be more efficient and more effective in all the business units and all the functions that support them,” Ford spokesman T.R. Reid told CNBC.

Ford employs about 31,000 salaried workers in North America.  As of the end of last year, Ford had 186,769 employees globally, with 90,873, or 48.7%, of those workers located in the U.S.

Ford is in the midst of a massive transformation of the company that includes plans to cut $3 billion in structural costs by 2026, while investing billions to expand its electric and commercial vehicle businesses.

Ford’s stock was down about 5% in late morning trading Monday to $15.10 a share. The stock is down about 27% in 2022.

This is a developing story. Please check back for updates.