Ford said it would begin layoffs this week, impacting mostly engineering jobs in the US and Canada as part of a move to exit unprofitable locations and cut headcount.

The development came after the company said in May it expected to take up restructuring charges between US$1.5bn and $2bn in 2023, Reuters reported.

The Wall Street Journal had reported the company plans to lay off at least 1,000 salaried employees and contract workers in North America, but Ford did not specify the number of roles to be affected by the move in communications with the news agency.

"People affected by the changes will be offered severance pay, benefits," Ford told Reuters in an emailed statement, adding the layoffs were not restricted to engineering roles.

"This is related to the Ford+ growth plan we introduced in 2021," the company added.

"Delivering on the plan includes adjusting staffing to match focused priorities and ambitions while raising quality and lowering costs."

CNBC had reported on Monday job cuts were expected to affect all three of Ford's business units - Ford Blue, Model e and Ford Pro - Reuters added.