Ford is expected to cut 8,000 jobs in the next few weeks to dedicate more funding for the company’s electric vehicle projects, according to a new report.
Bloomberg News reported that the cuts will be mostly concentrated in the company’s Ford Blue unit that focuses on gas-powered cars, such as the F-150, Mustang and Bronco SUV.
Other salaried positions throughout the company are also being eyed for cuts that Bloomberg said will likely begin this summer and will largely affect its U.S. workers.
Bloomberg reported that none of the plans have been finalized and are subject to change.
A spokesperson for Ford did not confirm Bloomberg’s report, according to multiple outlets.
The Detroit Free Press reported that company CEO, Jim Farley, wanted to slash costs by $3 billion by 2026. Mr. Farley also upped the company’s original $30 billion commitment in electric vehicles to $50 billion in March.
Mr. Farley cited job cuts as the way to boost profits that have been trimmed by the higher costs in producing electric vehicles, according to the paper.