Bloomberg reported Wednesday that Ford Motor (NYSE:F) is preparing to cut up to 8,000 jobs over the next few weeks as the legacy automaker attempts to boost profits to fund its electric vehicle push.
Cuts will be made in its newly created Ford Blue unit, which is responsible for manufacturing internal combustion engine vehicles, according to Bloomberg sources. In addition, there will be layoffs in other salaried operations throughout the company, although the plan is not yet finalized and could change.
The move would make Ford one of several companies to announce layoffs. Earlier today, it was reported that Google (NASDAQ:GOOGL) had announced a hiring pause.
It would also be a significant step by Ford Chief Executive Officer Jim Farley to stick to the company’s plan of cutting $3 billion in costs by 2026.
Ford has been making inroads into the electric vehicle market. In March, it restructured, splitting its carmaking in two, creating the “Model e” unit to scale up EV offerings and “Ford Blue” to focus on traditional gas vehicles.
Bloomberg stated the cuts might come in phases and are likely to begin this summer, with the majority being in the US. Farley has previously said that reducing staff is key to boosting profits.
Ford shares gained 1% on Wednesday.