As part of its strategy to exit unprofitable locations and reduce its workforce, Ford Motor Co announced on Tuesday that it will initiate layoffs this week. The majority of the impacted positions will be in the engineering sector and will affect employees in the United States and Canada.

This development follows Ford's previous announcement in May that it anticipates incurring restructuring charges ranging from $1.5 billion to $2 billion in 2023.

According to a report by The Wall Street Journal, Ford is reportedly planning to cut a minimum of 1,000 salaried employees and contract workers in North America. However, Ford has not provided specific details regarding the exact number of positions that will be impacted by this decision.

"People affected by the changes will be offered severance pay, benefits. This is related to the Ford+ growth plan we introduced in 2021. Delivering on the plan includes adjusting staffing to match focused priorities and ambitions while raising quality and lowering costs," Ford said in an emailed statement, reported Reuters. 

Following the footsteps of its peers, Stellantis NV and General Motors, the automaker is making a fresh move to streamline its operations through employee buyouts.

On Monday, CNBC reported that job cuts were anticipated to impact all three of Ford's business units, namely Ford Blue, Model e, and Ford Pro.

In previous statements, Ford CEO Jim Farley expressed that the company had an excessive number of employees and a shortage of workforce possessing the necessary skills required for the automotive industry's transition towards electric vehicles and digital services.

Back in February, Ford outlined its intentions to eliminate approximately 3,800 product development and administration positions across Europe within the next three years.