Ford is looking to cut costs and redirect funds.

Earlier this year, automotive manufacturer Ford announced its intent to begin refocusing on the development of electric vehicles. In order to facilitate this, the company is planning to undergo some major restructuring, starting with layoffs.

Ford plans to cut several thousand salaried jobs, people familiar with the matter say. The cuts are tied to auto maker’s goal of eliminating $3 billion in annual costs by 2026. https://t.co/bFaMDhzaqf

— The Wall Street Journal (@WSJ) July 21, 2022

According to a Bloomberg report, Ford is planning to ax approximately 8,000 jobs in order to cut costs and begin redirecting funds into the EV development effort. The majority of these cuts will be US-based jobs, and of those, a large portion of them occur within Ford’s ICE development unit, Ford Blue.

“As part of this, we have laid out clear targets to lower our cost structure to ensure we are lean and fully competitive with the best in the industry,” Chief Communications Officer Mark Truby told Bloomberg.

Ford is reportedly planning to cut 8,000 jobs to help fund its EV plans https://t.co/NNvT1YcC7W pic.twitter.com/HNka9DMdLa

— Engadget (@engadget) July 21, 2022

In addition to funding new projects, Ford is looking to trim excess expenditures and make the company leaner. This is all for the ultimate goal of slashing $3 billion from the company’s total operating costs by the year 2026.

“We have too many people,” Ford Chief Executive Officer Jim Farley, who put forth this plan earlier this year, said at a Wolfe Research auto conference in February. “This management team firmly believes that our ICE and BEV portfolios are under-earning.”