Ford is preparing to cut 8,000 jobs to facilitate the transition to electric vehicles

Ford Motor Co. is preparing to cut up to 8,000 jobs in the coming weeks to help fund its push towards electric vehicles, according to a report.

Bloomberg, citing unnamed sources familiar with the plan, said on Wednesday the cuts would largely affect the new Ford Blue unit that produces gas-powered vehicles, as well as “other wage-earning operations across the company.” The plan has reportedly not yet been finalized, so details may change.

The Ford Motor Company logo is displayed atop its world headquarters in Dearborn, Mich

The news comes shortly after Michigan offered the automaker a $100 million tax-funded incentive package in June as part of a plan to create new jobs in the state. The Bloomberg report does not mention how many jobs could be cut in Michigan.

Ford spokesman Mark Truby told the Detroit Free Press he could not confirm Bloomberg’s report.

Ford CEO Jim Farley said he plans to cut costs by $3 billion by 2026 and wants to make Ford Blue “the profit and cash engine of the entire company” . In March, Farley restructured the automaker to create two businesses: the “Model e” unit to develop electric vehicles and “Ford Blue” to focus on internal combustion engine vehicles such as the popular F pickup. -150, the Mustang and the Bronco SUV.

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