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DEARBORN, Mich. Ford Motor Co. confirmed Monday that its trimming its global workforce by 3,000 positions in a bid to lower costs as it eyes a long-range transition to electric vehicles.

According to The Wall Street Journal, the cuts primarily target white-collar and contract employees in the United States, Canada and India. The lions share of the layoffs, or roughly 2,000 positions, target salaried positions at the companys headquarters in Dearborn, Michigan, while the balance represents contract positions with outside agencies, Ford stated.

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The automaker began notifying workers of the reductions on Monday, a company spokesman confirmed.

Building this future requires changing and reshaping virtually all aspects of the way we have operated for more than a century, a message to employees, attributed to CEO Jim Farley and Executive Chairman Bill Ford, read.

It requires focus, clarity and speed. And, as we have discussed in recent months, it means redeploying resources and addressing our cost structure, which is uncompetitive versus traditional and new competitors, the message continued.

According to CNBC, Fords cost-cutting measures are the latest in a series of efforts by high-profile companies to reduce expenses and payrolls amid fears of a potential recession or economic softening, with inflation hovering near a 40-year high.

In turn, the cuts come less than a month after Farley told analysts that we absolutely have too many people in certain places, no doubt about it, the network reported.

The layoffs are effective Sept. 1, a spokesman confirmed to the Journal.

According to CNBC, Ford employs about 31,000 salaried workers across North America. By the close of 2021, the automaker counted nearly 187,000 global employees, nearly 49% of whom work in the U.S.

Since Farley took the reins in October 2020, Ford has launched a companywide reorganization, called Ford+, that includes plans to cut $3 billion in structural costs by 2026, while investing billions to expand its electric and commercial vehicle businesses, the network reported.

According to the Journal, Farley has stated publicly that his goal is to reach a 10% pretax profit margin by 2026, compared with the 7.3% reported in 2021.

We worked differently than in the past, examining each teams shifting work statement connected to our Ford+ plan. We are eliminating work, as well as reorganizing and simplifying functions throughout the business, the message to employees stated.

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