Ford Motor Co said it will begin layoffs this week, impacting mostly engineering jobs in the US and Canada, as part of the Detroit automaker's move to exit unprofitable locations and reduce headcount.
The development comes after the company said it expects to take up restructuring charges between $1.5 billion and $2 billion in 2023.
The Wall Street Journal said Ford plans to lay off at least 1,000 workers and contract workers in North America, but Ford did not specify the number of roles to be affected.
The changes will offer severance pay, benefits, and other benefits for employees affected by the changes, Ford said in an emailed statement.
The company added that it was related to the Ford growth strategy we introduced in 2021.
The plan means adjusting staffing to meet specific needs and objectives while boosting quality and lowering expenses. The automaker's latest move to streamline operations comes after peers Stellantis NV and General Motors said they would offer employee buyouts.
CNBC reported that job cuts were expected to affect all three Ford business units - Ford Blue, Model e and Ford Pro.
The automaker's CEO, Jim Farley, has previously said the automaker had too many employees and that not enough of its workforce had the skills required as the car industry shifts to electric vehicles and digital services.
In February, Ford said it would eliminate 3,800 product development and administration jobs in Europe over the next three years.