Ford plans to cut 7,000 jobs, or 10 percent of its global workforce, as part of a reorganization as it revamps its vehicle offerings, the company said Monday.
The reorganization will involve some layoffs and reassignments and should be complete by the end of August, a Ford spokeswoman said. Ford has been phasing out most sedan models in the United States as more consumers have opted for pickup trucks and sport utility vehicles.
The move, which began last year, will lead to 800 layoffs in North America in total, including about 500 this week, said Ford spokeswoman Marisa Bradley.
The company has yet to determine the specifics in other regions, she said.
“As we have said, Ford is undergoing an organizational redesign process helping us create a more dynamic, agile and empowered workforce, while becoming more fit as a business,” Bradley said.
“We understand this is a challenging time for our team, but these steps are necessary to position Ford for success today and yet preparing to thrive in the future.”
Ford had signaled it expected significant job cuts in April 2018 when it announced a plan to phase out several small models in North America. At the same time, the company is ramping up investment in electric cars and autonomous driving technology.
General Motors has also undertaken job cuts over the last year for similar reasons.
Shares of Ford dipped 0.4 percent to $10.25 in early trading.