Ford announced Monday that it plans to lay off thousands of workers.
The cuts will impact about 2,000 salaried employees and 1,000 agency personnel, according to a Ford spokesperson.
They represent about 6% of the 31,000 full-time salaried workforce in the U.S. and Canada. Ford’s 56,000 union factory workers are not affected. Some workers also will lose jobs in India.
The company said the majority of the cuts will be at locations in Michigan.
“Even while we are making difficult but necessary changes in some areas of our business, we are investing in areas that are important to Ford and our customers including production of our iconic brands and EV vehicles and in our Ford Pro, commercial businesses,” Ford said in a statement.
In a letter to Ford employees, the company said the auto industry is changing with “breathtaking speed.”
“We have an opportunity to lead this exciting new era of connected and electric vehicles; create the most growth and value for Ford and our stakeholders since we scaled the Model T; and continue to make a positive difference in our customer’s lives and on society at large,” Ford’s announcement letter to employees said.
The company said employees will learn specifics about the changes from regional and local managers later this week.
This is in addition to a decision to shut down its F-150 line at Claycomo in February due to a chip shortage.
United Auto Workers Local 249 also said workers at the Claycomo plant were temporarily laid off earlier this month.
The Associated Press contributed to this report.