In an effort to catch up to the competition for software-driven electric vehicles, Ford Motor says it will eliminate 3,000 salaried and contract positions worldwide, largely in North America and India.

As the auto industry transitions toward electric vehicles and digital services, Ford's CEO, Jim Farley, has expressed his belief that the Dearborn, Michigan-based manufacturer employs too many people and does not have the skills it needs to succeed.

“We are eliminating work, as well as reorganising and simplifying functions throughout the business. You will hear more specifics from the leaders of your area of the business later this week,” Farley and Ford chairman Bill Ford wrote in a joint email, reports Reuters.

Ford employs a staff that mostly supports classic combustion technology products, just like other well-known automakers. Farley envisions Ford creating a wide range of electric vehicles in the future. Like Tesla, Ford aims to increase revenue with software and connected services.

This year, Tesla's pre-tax profit margins were higher than Ford's, and Farley has been clear about the need for cost reduction.

Farley and Ford claimed that the company's cost structure "is uncompetitive versus traditional and new competitors." in an email sent to the workers on Monday, August 22, according to the report.