Ford Motor Co. is laying off 1,600 workers at its new electric vehicle battery plant in Glendale, Kentucky, as the automaker shifts away from electric vehicle (EV) production and pivots toward building batteries for energy storage systems.
“The plant closure is going to negatively affect the entire county,” said Halee Hadfield, who joined the Glendale facility in early 2024.
“There are a lot more people out here living in abject poverty than what the people like to think or admit to.”
Employees were notified on Monday in a video message from Michael Adams, CEO of BlueOval SK, the original joint venture between Ford and SK On.
Adams said the transition will result in “the end of all BlueOval SK positions in Kentucky.”
The layoffs are not immediate. Workers will continue to receive pay and benefits, including health insurance and access to an employee assistance program, for the next 60 days.
As of August, about 1,450 of the 5,000 jobs originally promised at the Glendale site had been filled.
Pivot to Battery Storage for Data Centers and Utilities
Ford plans to convert the plant to manufacture battery storage systems for utilities, solar and wind power developers, and data centers, including those supporting artificial intelligence.
Production of the new battery systems is expected to begin in late 2027.
“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting,” Ford CEO Jim Farley told The Wall Street Journal.
Ford also confirmed the company will take a $19.5 billion hit as part of its transition away from the EV business. They have lost $13 billion on its EV operations since 2023.
The closure comes just months after the first battery for the all-electric Ford F-150 Lightning rolled off the assembly line.
Ford has now canceled production of that truck. Progress on a second battery plant next to the current Glendale facility has also been paused, with no equipment yet installed.
Local Workers React to the Sudden Shift
Halee Hadfield, who has worked at the Glendale facility since early 2024, said many residents in the area are already struggling financially, and the closure will only make things worse.
Hadfield said the layoffs could impact around 1,800 workers when including people who relocated or commute from surrounding areas. For her, the biggest concern is losing access to health insurance.
“My wife has prescriptions that she has to get refilled on a monthly basis, and if we don’t have health insurance, she has to miss out on everything that she needs,” she said.
With the news arriving just weeks before the holidays, Hadfield said many are scrambling to figure out what to do next.
“I already have Indeed open on my phone; I’m going to start applying for jobs. What other choice do I have?”
Ford Promises New Jobs, But Uncertainty Remains
In the video announcement, Adams emphasized the layoffs were not related to employee performance.
“You have always been what makes this company special,” he said. “You are the backbone that BlueOval SK was built around.”
Employees will receive more information from HR in the coming days, Adams said.
Kentucky Gov. Andy Beshear responded to the announcement by saying the state remains committed to being the “EV battery capital of the U.S.,” despite setbacks.
“Right now, our primary focus is helping the affected BlueOval employees find new jobs,” he said through a spokesperson.
Beshear said the state is working with Ford on a restructured version of the project and is renegotiating the terms of the original incentive agreement. Job fairs and a resource website for affected workers are in the works.
Ford says it plans to hire 2,100 people for the revamped facility and that laid-off workers will have the chance to apply. However, the company’s new plan will use only about 23% of the original plant’s capacity.
Lawmakers Urge Accountability as Deal Changes
Republican state Reps. Samara Heavrin and Steve Bratcher, who represent Hardin County, said they remain focused on supporting affected workers.
“We are optimistic about Ford Motor Company’s decision to take over the Glendale facility and transition the project toward energy storage… At the same time, optimism must be matched with both caution and accountability,” they said in a joint statement.
The initial $5.8 billion investment in the Glendale plant was hailed as a game-changer for Kentucky’s economy. But as demand for EVs has slowed and federal emissions rules were rolled back under President Donald Trump, Ford appears to be pulling back significantly from its earlier electric strategy.
“It’s going to mean significant drain from the area,” Hadfield said.
“Michael Adams will not suffer as a result of this closure. He will be fine, but the vast majority of the rest of us won’t be.”