Ford announced this week that it would trim staff at its Dearborn, Michigan, plant after sales of its electric trucks failed to impress.
The automaker is looking to cut two-thirds of its workforce at the facility, which employs around 2,100 workers. One-third of the facility will be transferred to the nearby Michigan Assembly Plant in Wayne to manufacture Ford’s Bronco and Ranger models.
An additional 700 workers will either accept a retirement package, agreed on during last year’s contract negotiations with the United Auto Workers, or be transferred to a facility in southern Michigan.
The transfers come as the automotive industry reacts to a shrinking demand for electric vehicles in the U.S.
EV sales are expected to grow 32% in 2024, down from 47% growth in 2023, so Ford isn’t making the sector its main focus.
Ford cut production of its F-150 Lighting this year amid low sales and rising dealership inventories. Other automakers such as EV-centric Tesla have slashed prices in recent months to ramp up sales.