Ford Motor Company expects workforce reductions to continue into 2026. Analysts forecast an additional 8,000 to 11,000 jobs could be cut. This potential new round follows 11,000 job cuts implemented in 2025.
The cuts address the company’s ongoing struggle to control costs, which CEO Jim Farley noted are too high. These projections stem from a persistent "EV winter," where EV consumer demand has failed to meet previous high expectations. The resulting slowdown has left Ford with stranded capacity at facilities built for an unrealized EV boom.
In response to the market cooldown, Ford is retooling plants for greater flexibility. The company is shifting away from EV-only lines to accommodate increased hybrid vehicle production. This move represents a strategic pivot away from its initially aggressive EV transition targets.