Ford has announced major changes to its workforce at the Rouge Electric Vehicle Center in Dearborn, Michigan, where it will be significantly reducing the number of employees dedicated to building the F-150 Lightning.
Starting in April 2024, only one-third of the plant’s 2,100 workers will remain on-site, a stark contrast to Ford’s previous expansion efforts aimed at ramping up production to meet the initial high demand for its electric truck. The reduction will see approximately 700 employees transferring to the Michigan Assembly Plant to contribute to the production of the gas-powered Bronco and Ranger.
The remaining workforce is faced with two choices: accept a $50,000 retirement package from recent contract negotiations or be reassigned within southeast Michigan.
Despite these changes, Ford assures that there will be no job losses, attributing the move to a strategic realignment rather than a cutback, a company spokesperson told the Detroit Free Press.
The reduction in the workforce is due in part to the slowdown in demand for the F-150 Lightning, and part of a larger trend affecting the EV industry. Sales have been slower than anticipated, prompting Ford to adjust its production plans significantly.
The Detroit-based automaker was originally planning to build over 180,000 units in 2024, but the company has scaled back those plans to an expected 55,000 units this year.