Ford Motor Company has announced it will be laying off staff in the United States and Canada.
According to the June 27 announcement, they layoffs are likely mostly confined to the company's engineering division.
It comes as part of the Detroit automaker's decision to vacate unprofitable locations and reduce its workforce in order to cut costs, underlined by last month's statement that it is looking to redeem costs for restructuring. Throughout this year, the company estimates it will cost between $1.5 billion and $2 billion.
“We continue to review our global businesses and may take additional restructuring actions where a path to sustained profitability is not feasible when considering the capital allocation required for those businesses,” Ford said in its first-quarter filing.
It comes not long after peer companies Stellantis NV and General Motors made an announcement offering employee buyouts.
The job cuts are expected to affect Ford's three main business units—Ford Blue, Model e and Ford Pro.
The company told CNBC that those affected will be offered severance pay, including benefits, further adding that it is part of its 2021 Ford+ growth plan.
"Delivering on the plan includes adjusting staffing to match focused priorities and ambitions while raising quality and lowering costs," the statement said.
Ford CEO Jim Farley previously indicated that too much of the company's excess workforce didn't possess adequate skills to keep up with the current trend toward electric vehicles and digital services.
Last year the company laid off around 3,000 white collar jobs as part of its transition to electric vehicles.
The changes also come on top of an earlier announcement by Ford concerning its European division, when it announced plans to axe nearly 4,000 product development and administration jobs throughout the continent by 2026.
Stocks appear to be unaffected by the current announcement and the company is showing a healthy performance. Whether it relates to recent layoffs remains still undetermined.