Ford to Lay Off 1,600 at Glendale Plant, Shift to Energy Storage
Ford Announces Major Shift at Kentucky Battery Plant
All 1,600 employees at Ford’s new electric vehicle battery plant in Glendale, Kentucky, will be laid off as the company converts the facility to manufacture battery energy storage systems for data centers and utilities.
Ford plans to turn the Glendale factory into a battery-storage operation serving customers that include utilities, wind- and solar-power developers, and large data centers that train artificial intelligence. The Wall Street Journal reported this plan on Monday.
Timeline and Financial Impact
Ford announced on Monday that it intends to begin shipping battery energy storage systems from its Kentucky and Michigan plants in late 2027. The company stated that this transition away from its electric vehicle business will result in a $19.5 billion hit to its profit.
According to the Wall Street Journal, Ford has lost $13 billion on its electric vehicle business since 2023. In a news release issued Monday, Ford Chief Executive Jim Farley described the move as a redeployment of capital into what the company calls higher-return growth opportunities, including its new battery energy storage business.
Employment Changes at Glendale Facility
In a video message to employees on Monday, Michael Adams, CEO of BlueOval SK, said the shift will result in “the end of all BlueOval SK positions in Kentucky.” Adams did not specify a date for the layoffs but said employees will receive paychecks and have access to benefits for the next 60 days.
Ford plans to hire 2,100 employees for the new version of the Glendale plant. A company spokesperson said Monday that all laid-off workers will have the opportunity to apply for those new positions.
Project Restructuring in Hardin County
The Glendale operation is part of a larger Hardin County project that was originally promoted as a $5.8 billion investment in Ford’s electric vehicle infrastructure. The first battery produced at the Kentucky plants, designed to power the all-electric Ford F-150 Lightning, rolled off the assembly line in August of this year. Ford canceled production of that truck in an announcement made Monday.
Progress on a second plant adjacent to the Glendale facility has been paused, and equipment has not yet been installed inside. Earlier this year, the Wall Street Journal reported that the second plant could potentially be used to supply Nissan with batteries for its electric vehicle fleet.
Changes to Ford–SK On Partnership
Last week, Ford and SK On announced the end of their partnership that initiated the Hardin County plants. Under the new arrangement, Ford will take full ownership of the Kentucky plants through a subsidiary. SK On will assume ownership of a nearly finished plant in Tennessee and will produce batteries there for utility needs similar to those planned for the Glendale facility.
State Response and Incentive Talks
Kentucky Governor Andy Beshear said through a spokesperson on Monday that he is in direct contact with Ford leadership regarding a restructured future project. Beshear stated that the primary focus is helping affected BlueOval employees find new jobs, including coordination with company and community leaders, planning job fairs, and creating a website with resources.
Beshear’s office confirmed that the terms of the state incentive agreement related to the project are being renegotiated. Beshear said on Monday evening in Louisville that the state is currently in discussions with Ford about the agreement.
Capacity Plans for Glendale Site
The Wall Street Journal reported Monday that Ford’s new plan for the Glendale plants will use 23% of the site’s original capacity when production of the new batteries begins in 2027.