Ford cuts contract workers ahead of planned layoffs

Ford (NYSE:) notified contract workers employed by outside companies late Friday that their services would no longer be needed, the Michigan automaker confirmed Saturday.

The company alerted some workers who are employed by outside agencies that their contracts were not being renewed. When asked how many people would not be reporting to work Monday, Ford spokesman T.R. Reid said, “We’re not providing numbers.”

“People in certain agency positions across a few skill teams were notified by their employers that their assignments at Ford have ended,” Reid told reporters. “The changes are consistent with the Ford+ plan — aligning capabilities and roles with product and service priorities and, in the process, reducing costs.”

“I was let go on Friday when I was wrapping up my work and got a call from my agency. It’s really sad that I haven’t been here more than 3 months and already out,” said a Saturday morning post on a Ford layoffs site. “I’m from Model e space.”

Reports surfaced Friday that the automaker plans to initiate layoffs for salaried employees as soon as Monday. The company’s workforce reduction will affect both the combustion and electric divisions, while the Ford Pro commercial unit is anticipated to remain unaffected.

The recent white-collar layoffs at Ford are part of their ongoing efforts to cut costs and align their workforce with the changing demands of the digitally-connected, electric vehicle market. As competition intensifies, Ford is making strategic moves to ensure they have the right talent in place to stay competitive.

Reid said late last week that the company had “nothing to announce,” which he reiterated on Saturday.

“As we’ve said, part of the ongoing management of our business includes aligning our global staffing to meet business plans, and staying cost competitive as our industry evolves,” he said Thursday. “At the same time, we continue to hire in key areas so that we have the skills and expertise needed to deliver on the Ford+ plan and leading product and services.”

Ford executives have said the company has a roughly $7 billion cost disadvantage compared to some of its competitors. The automaker is making a substantial investment of $50 billion in electrification by 2026. Their ambitious goals include achieving a companywide earnings margin of 10%, an 8% margin specifically in the EV business, and ramping up production to 2 million EVs annually.

Shares of F are down 0.04% in premarket trading on Monday.