Ford layoffs hit engineering jobs in Canada

Ford Canada is cutting numerous engineering jobs this week as the car company carries out layoffs that will also affect its U.S. operations, the automaker confirmed Monday. The cuts are part of the company’s continuing plans to restructure as it seeks to cut billions in costs.

More details: A Ford spokesperson failed to say how many employees would be affected by the layoffs.

• The cuts will hit all three of Ford’s business units, including Ford Blue, its traditional engine division; Model e, its electric vehicle operations; and Ford Pro, the company’s fleet service section.
• The cutbacks are another step in CEO Jim Farley’s Ford+ plan, which has focused on restructuring operations for the past several years.
• Ford fired 3,000 employees in North America in August and laid off nearly 4,000 in Europe.

What they’re saying: Farley said Ford has a $7 billion cost disadvantage compared to some of its competitors.

• “We continue to review our global businesses and may take additional restructuring actions,” said Farley.
• “People affected by the changes will be offered severance pay, benefits, and help to find new careers,” said the company.

Last week, many contractors were cut by Ford. Global employee headcount at the auto manufacturer dropped by 10,000 to 173,000 in 2022.

Major layoffs continue

Ford joins the growing list of major North American companies that have announced sweeping layoffs in 2023.

Several big names, including Ritual, Goldman Sachs, Suncor Energy, Meta, LinkedIn, Hudson’s Bay, and Accenture, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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• Layoffs in Canada

Termination agreements for Ford Canada employees

In Canada, non-unionized employees and senior executives working at Ford Canada are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance for provincially regulated employees
• Severance packages in mass layoffs
• Severance packages for auto workers

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.