Ford may be preparing to lay off 8,000 employees as the automaker pivots to the electric vehicle (EV) market.
Ford has been working to transition its lineup to hybrid and EVs, with the Mustang Mach-E even toppling Tesla’s Model 3 in Consumer Reports’ ranking. According to Bloomberg, the company is now planning on cutting 8,000 jobs in an effort to help fund its continued EV transition.
The cuts will primarily be in the Ford Blue unit, the division responsible for internal combustion engine development. There will also be cuts to other salaried positions throughout the company.
The news is not particularly surprising, with CEO Jim Farley warning the company had too many people.
“We have too many people,” Farley said in February, at a Wolfe Research auto conference. “This management team firmly believes that our ICE and BEV portfolios are under-earning.”
Bloomberg reached out to Ford for comment. Although it declined to comment on layoffs, its spokesperson did say the company is continuing to realign to focus on EVs.
“As part of this, we have laid out clear targets to lower our cost structure to ensure we are lean and fully competitive with the best in the industry,” Chief Communications Officer Mark Truby said in a statement.