Ford contract workers let go as salaried employees face impending layoffs

June 26, 2023: Ford Motor Co. has confirmed that contract workers employed by outside agencies were notified on Friday that it was their last day of work. This decision aligns with Ford’s cost reduction efforts under the Ford+ plan, which aims to realign capabilities and roles with product and service priorities. The exact number of contract workers affected has not been disclosed.

Reports of these contract worker cuts surfaced following inquiries by the Detroit Free Press. Some contract workers expressed their disappointment, with one worker sharing their experience of being let go after just three months on the job.

In addition to the contract worker cuts, Ford is also expected to begin laying off salaried employees, primarily in the Ford Blue and Model E divisions. Ford Blue focuses on internal combustion engine vehicles, while Model E is responsible for technology and electric vehicles. However, the Ford Pro commercial unit is not anticipated to be affected.

While the specific number of salaried employees to be laid off has yet to be confirmed, it is expected to be fewer than the 3,000 job cuts that occurred in August across the U.S., Canada, and India. Ford employs approximately 28,000 white-collar workers in the U.S. and about 70,000 worldwide.

These layoffs come as Ford and other automakers transition from gasoline-powered to electric vehicles, necessitating workforce realignments, and cost-cutting measures. Like many companies in the industry, Ford is seeking to adapt to the changing landscape while making new investments in electric vehicle technologies.

These changes reflect Ford’s ongoing efforts to optimize its operations, streamline its workforce, and position itself for future growth in the evolving automotive market.