Ford Cuts 350 Connected-Vehicle Software Jobs to Streamline EV Software Development

Ford Motor Co. announced on May 13, 2025, that it is eliminating approximately 350 connected-vehicle software jobs in the U.S. and Canada, representing about 5% of its connected-vehicle software team. This move, aimed at boosting efficiency, comes as Ford refines its electric vehicle (EV) and software-defined vehicle strategy to stay competitive in a rapidly evolving industry. According to Automotive News, the layoffs are part of a broader effort to optimize Ford’s workforce and align talent with its next-generation EV goals.

Strategic Workforce Realignment

The job cuts affect employees working on projects like the Ford and Lincoln Digital Experience, a connected-vehicle platform enhancing user interfaces and vehicle connectivity. Ford’s spokesperson emphasized that the layoffs are not tied to recent U.S. import tariffs or the cancellation of Ford’s next-generation electrical software architecture, known as FNV4. “We consistently review our organization to make sure we are operating efficiently and effectively in a fast-paced and dynamic environment,” the spokesperson stated, adding that the changes will “ensure we have the right talent and organization to deliver the world’s best next-generation connected vehicles.”

This realignment reflects Ford’s focus on streamlining operations under Doug Field, the chief EV, digital, and design officer. CEO Jim Farley has prioritized recruiting top software talent to advance Ford’s software-defined vehicles, describing it as “perhaps the biggest untold story at Ford” during a 2022 earnings call.

Technical and Economic Implications

Ford’s decision to scrap FNV4, reported by Reuters, was driven by rising costs and delays. By merging two zonal electric architectures into a single platform, Ford aims to improve capital efficiency and accelerate software deployment. “It’s a very significant save for capital efficiency,” Farley noted on May 5 during Ford’s first-quarter earnings call. He highlighted that the unified architecture allows Ford to deliver software updates to vehicles and customers more effectively, a critical capability for modern EVs that rely on over-the-air updates for performance and user experience enhancements.

The layoffs, while a small fraction of Ford’s workforce, signal a shift toward leaner teams capable of executing complex software integration. For EV owners and enthusiasts, this could mean faster delivery of advanced features like improved infotainment, autonomous driving capabilities, and vehicle-to-grid integration. However, the cuts may also raise concerns about potential delays in rolling out new connected-vehicle features if the reduced team struggles to meet ambitious timelines.

Industry Context and Future Outlook

Ford’s workforce reduction aligns with broader industry trends, as automakers balance cost-cutting with investments in EV and software development. The global EV market is projected to grow, with software playing a pivotal role in differentiating brands. Ford’s focus on efficiency could strengthen its position against competitors like Tesla and General Motors, who are also investing heavily in software ecosystems.

In Europe, Ford is cutting about 14% of its workforce, primarily in Germany and Great Britain, though these reductions are unrelated to the U.S. and Canada layoffs. The Cologne, Germany, factory faces potential strikes starting May 14, 2025, highlighting labor tensions amid Ford’s restructuring.

For EV enthusiasts, Ford’s moves underscore its commitment to delivering cutting-edge connected vehicles, even as it navigates economic and operational challenges. By optimizing its software teams and architecture, Ford aims to offer EVs that are more responsive to consumer needs, potentially at lower production costs. However, the success of these changes will depend on Ford’s ability to retain critical talent and execute its streamlined vision effectively.