By Gabby Chen

(JW Insights) May 17 -- Ford China reportedly plans to lay off over 1,300 employees with "N+3" salary compensation, reported China News Service on May 15.

Ford China has not confirmed the rumors regarding the number of layoffs and compensation.

Ford's annual sales in the Chinese market for 2022 reached 496,000 vehicles, experiencing a year-on-year decline of 33.5%, public data showed.

Ford has been making personnel adjustments in recent years to accelerate its transformation.

According to Ford China executives, the company is currently working on creating a more streamlined and flexible organizational structure. The focus is on allocating resources to core business areas where they have a competitive advantage, aiming to achieve their business goals in China.

Jim Farley, CEO of Ford, highlighted the need to reduce bloated positions related to gasoline-powered cars and hire more talent in electric vehicles and digitalization. This shift involves cutting traditional roles and recruiting professionals in the electric vehicle sector.

In February of this year, Ford announced a further layoff of 3,800 employees in various locations across Europe, including 2,300 in Germany and 1,300 in the UK. In March, the company said it would cut about 1,100 jobs in Spain, according to media reports.