Ford Motor Co. expects to take up restructuring charges between $1.5 billion and $2 billion in 2023, it said in a regulatory filing on Wednesday, as part of the U.S. automaker’s move to exit unprofitable locations and cut headcount.
The charges will be primarily attributable to “employee separations and supplier settlements,” the automaker said, adding additional restructuring actions may be taken “where a path to sustained profitability is not feasible when considering the capital allocation required for those businesses.”
Earlier this year, Ford said it plans to cut one in nine jobs in Europe, as part of a drive to lower costs in the region and concentrate engineering know-how in the United States.
It has also been curbing operations in countries such as Brazil and India, as it pours billions into developing electric vehicles.
The disclosure comes a day after the company posted robust quarterly results but issued a measured full-year outlook, weighed down by continued losses in its electric-vehicle unit.
