Ford Motor said it will cut a total of 3,000 salaried and contract jobs, largely in North America and India, as it looks forward to developing software-driven electric vehicles.
CEO Jim Farley has said before as well that the automaker had too many people, and that not enough of its workforce had the skills needed as the auto industry shifts to electric vehicles and digital services.
“We are eliminating work, as well as reorganizing and simplifying functions across the business. You will hear more specifics from the leaders of your area of the business later this week,” Farley and Ford Chairman Bill Ford wrote in a joint email, according to Reuters.
Like other traditional automakers, Ford has a workforce mainly hired to support a traditional combustion technology product lineup.
The automaker has started separating its operations into electric, the combustion engine and commercial vehicle operations. Farley said in July “cost reduction will happen” in the combustion operations. But Ford said on Monday the staff cuts will impact the entire company.