Ford cutting 3,000 jobs as it focuses on electric vehicles

Ford Motor Co. is laying off approximately 3,000 non-unionized workers in a bid to lower costs as it shifts its focus to electric vehicles.

In an email to staff on August 22, 2022, the Dearborn-based automaker said the cuts will affect 2,000 full-time salaried employees and 1,000 contract workers, all in white-collar positions. The reduction represents about six per cent of the company’s 31,000 full-time salaried workforce in Canada and the U.S.

“Building on this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century,” Ford said in the email. “It means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new companies.”

A Ford spokesperson confirmed to CBC News that 120 jobs in Canada will be affected by the cuts. The automaker has already restructured in Europe, Asia, and India.

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Termination agreements for Ford employees

In its layoff announcement, Ford said that it will provide affected workers with benefits and help them find new jobs.

Non-unionized employees and senior executives at Ford are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring. Severance can be as much as 24 months’ pay, depending on a number of factors.

Individuals working in Canada as contractors for Ford are also likely owed severance pay. This is because companies often misclassify employees as independent contractors.

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WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized 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.