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Automobile Company Layoffs Employees as Part of Turnaround Plan

American multinational Automobile manufacturer said that it has planned to lay off 580 salaried employees and agency workers as part of the new process. The company also spoke about the new ford+ turnaround plan that mainly focuses on Electric vehicles.

Ford has revealed the exact number of employees they would lay off. The statement said that they have decided to cut 350 salaried and 230 agency positions. This reduction is mainly in the engineering department as the company shifts from traditional vehicles to electric cars and trucks that require employees with different skill sets. The company said they will continue to hire employees who have the required skills to deliver products, and services and also coordinate with the ford+ plan. The automaker also said that this has highly affected the employees and agencies for the non-ford employees were announced on Wednesday. The Automobile manufacturer reported a net loss of $3.1 billion in the first quarter.

The layoffs will be completed by the end of the week which comes less than two months after ford said it has planned to reorganize operations to separate its electric and internal combustion engine businesses into different units within the automaker. The automaker also said that the eligible employees will receive benefits continuation and severance equal to up to nine months of pay based on the service and other career transition services. The company’s spokeswoman declined to estimate how much the package will cost the company.

The job losses, which were reported by the Detroit Free Press, affect just around 1% of the company’s about 31,000 paid employees in the United States. The company employed 186,769 employees worldwide at the end of last year, including 90,873 hourly and salaried workers in the United States.

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