(Yicai Global) May 17 -- The Chinese arm of US carmaking giant Ford Motor will further optimize its production and structural costs, thus letting go of an undisclosed number of employees.

With the cost optimization plan, Ford China aims to create a leaner and more flexible team to ensure the company wins the fierce competition in the Chinese market, The Paper reported.

Recent online rumors claimed Ford China is about to lay off more than 1,300 staffers.

Ford China sold a total of 496,000 units last year, achieving a 2.1 percent market share. Sales of Changan Ford, a joint venture between Ford China and Changan Automobile, fell 17.6 percent to 251,000 units in 2022 from the previous year. In the first quarter, the JV sold 44,800 cars, down 25.7 percent from a year earlier.

Ford’s poor performance in China is due to a slow transformation toward new energies. Its only pure electric model in the Chinese market, the Ford Mustang Mach-E, sold only 4,860 units last year, according to data from the China Passenger Car Association.

Ford earlier said it would accelerate its electrification transformation in China and that its first jointly-developed electric model is under development.

Editor: Futura Costaglione