Ford to Cut Jobs to Fund Shift Toward Electric Vehicles

New York – Ford Motor announced Monday that it would cut 3,000 jobs this week in a bid to boost profits as it seeks to fund the $50 billion it plans to spend on electric vehicles, according to Bloomberg.

The cuts will come primarily in the US, while some positions also are being eliminated in Canada and India, a company spokesman said. The total includes 2,000 salaried workers and 1,000 contract personnel.

Most are coming from Ford’s operations that build traditional internal combustion engine vehicles, which Chief Executive Officer Jim Farley has said he wants to make the “the profit and cash engine for the entire enterprise.”

Ford plans to build 2 million electric vehicles a year by the end of 2026, up from less than 64,000 last year, as it seeks to catch EV leader Tesla Inc. To finance its ambitions, Farley has said he wants to make more money on traditional gasoline-fueled vehicles like the Bronco sport-utility vehicle. He has repeatedly said the company has too many workers, according to Bloomberg.