Ford confirms layoffs, says it’s cutting about 3,000 jobs

Ford Motor Co.

eat -4.59%

confirmed on Monday that it is laying off about 3,000 employees and contract workers, marking its latest effort to cut costs as it makes a transition to longer-range electric vehicles.

Ford sent an internal email Monday to employees, saying it would begin notifying affected salaried and agency workers this week of the cuts. The email was reviewed by the Wall Street Journal.

The workforce reduction mainly targets workers in the US, Canada and India. About 2,000 of the targeted cuts will be salaried jobs at the Dearborn, Mich., automaker. The remaining 1,000 employees work in contract positions with outside agencies, the company said.

The cuts were not unexpected. The Wall Street Journal and other media reported in July that layoffs were coming for white-collar staff as part of a broader restructuring to sharpen the auto company’s focus on electric vehicles and the batteries that power them.

Ford stock fell nearly 5% in midday trading Monday on news of a $1.7 billion jury verdict in a case involving an F-250 truck rollover accident that left two people dead.

The company’s email, signed by executive chairman Bill Ford and CEO Jim Farley, said Ford is changing the way it operates and reallocating resources as it embraces new technologies that were not previously core to its business, such as developing advanced software for her vehicles. The job cuts are effective Sept. 1, a spokesman said.

“Building that future requires changing and reshaping almost every aspect of how we’ve operated for more than a century,” the internal message said.

Mr. Farley recently said that Ford has too many employees and that the existing workforce lacks the expertise needed to transition to a portfolio of electric vehicles with software.

It has said it plans to cut $3 billion in annual costs by 2026 as part of its goal to reach a 10 percent pretax profit margin by then, down from 7.3 percent last year.

Like many global automakers, Ford is pouring money into EVs in an effort to close the sales gap with Tesla Inc.

The company said it will spend about $50 billion by 2026 on developing electronics, aiming for global sales of two million by then.

Mr. Farley earlier this year split the company into separate divisions, including one to focus on EVs and advanced technologies and another to handle traditional internal combustion vehicle lines.

He said profits from the range of natural gas and diesel vehicles will help fund the transition, but that part of the business needs to run more efficiently.

Empty dealership lots, above-sticker prices, and online sales—supply chain issues and the shift to electric vehicles have accelerated changes in the car-buying process. We visit a car dealer to see how consumers and sellers are adapting and what changes may be here to stay. Photo: Adam Falk/The Wall Street Journal

Write to Nora Eckert at nora.eckert@wsj.com

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