Ford is cutting 1,600 jobs at its BlueOval SK battery plant in Kentucky as it unwinds its electric vehicle battery joint venture with SK On and shifts strategy. The layoffs are significant enough that the U.S. Department of Labor has stepped in with targeted aid for affected workers in the state. Federal filings show Ford bracing for a multibillion-dollar accounting hit tied to the move, signaling how costly this pivot away from EV batteries could be.
The U.S. Department of Labor has awarded $2,000,000 to Kentucky to support workers affected by mass layoffs and closures, and it lists BlueOval SK among the impacted employers. That federal intervention confirms the scale of the job losses and puts public money behind retraining and reemployment efforts at a moment when Ford is exiting a high-profile EV battery venture.
Why Ford is laying off all 1,600 workers matters now
The inclusion of BlueOval SK in the group of employers tied to the $2,000,000 grant shows that federal officials view the Kentucky layoffs as part of a broader wave of job losses in the state, according to the U.S. Department of Labor. That grant is intended to pay for services such as job search assistance and skills training for workers who suddenly find themselves without a paycheck.
For Kentucky, the timing is sensitive. The state has marketed itself as a hub for advanced manufacturing, including electric vehicle components. A large battery plant shedding 1,600 jobs at once risks cooling that narrative and could influence where future EV-related investments go. The federal money helps soften the immediate blow, but it does not replace the scale of direct employment that BlueOval SK represented.
The layoffs also arrive as Ford restructures its relationship with SK On through a Joint Venture Disposition Agreement. That agreement, disclosed in a Form 8-K, shows Ford stepping back from its previous battery investment and expecting an approximately $3,000,000,000 pre-tax charge tied to impairment of its BlueOval SK stake, according to the Ford Motor Company filing. A charge of that size indicates that Ford is writing down a major bet on EV batteries.
The hypothesis many analysts will test over the coming months is whether this unwind leads to a visible drop in new EV battery manufacturing job postings in Kentucky. Public datasets from the Bureau of Labor Statistics, accessible through bls.gov, track employment trends by industry and region. If the BlueOval SK cuts are not offset by new projects, those figures could show a clear cooling in battery-related hiring within about half a year.
The evidence behind Ford is laying off all 1,600 workers
The clearest public confirmation that BlueOval SK is shedding jobs comes from the U.S. Department of Labor grant announcement. In that document, the agency states that it is awarding $2,000,000 to help Kentucky workers affected by mass layoffs and closures and lists BlueOval SK among the employers whose workers are eligible for assistance, according to the Employment and Training Administration. The presence of BlueOval SK on that list ties the company directly to the mass layoff funding stream.
On the corporate side, Ford’s own securities filing provides the financial and strategic context. In a Form 8-K filed on December 9, 2025, Ford states that it entered into a Joint Venture Disposition Agreement involving SK On and BlueOval SK and that it expected an approximately $3,000,000,000 pre-tax charge related to impairment of its BlueOval SK investment in the fourth quarter of 2025, according to the SEC document. That language confirms that Ford is materially reducing or exiting its role in the joint venture.
The Department of Labor release also places the BlueOval SK layoffs within a larger set of Kentucky job losses, which is why the grant is structured to serve workers from multiple employers, not just Ford’s battery venture. While the document does not break down how much of the $2,000,000 will flow specifically to former BlueOval SK workers, it makes clear that they are part of the target group for retraining and other employment services, according to the federal grant announcement.
For workers trying to understand their options, federal tools such as the elaws guidance system and employer-focused resources on the Registered Apprenticeship Program site can help explain eligibility for benefits, training pathways, and how to connect with new employers. These platforms are part of the same federal ecosystem that is now channeling the $2,000,000 grant into Kentucky’s workforce system.
What remains unresolved for Ford is laying off all 1,600 workers
Several key questions remain unanswered by the federal grant notice and Ford’s securities filing. The documents do not spell out how many of the 1,600 workers will be covered by the $2,000,000 grant, nor do they explain how funds will be divided among the various Kentucky employers listed as impacted, according to the Department of Labor release. There is also no detail on whether any of the affected workers will be transferred to other Ford operations instead of losing their jobs outright. Plant-specific employment data and layoff counts in public labor statistics are not provided in the cited sources, so independent confirmation of the exact headcount at the Kentucky facility is not available in these documents.
The Form 8-K gives only a high-level description of the Joint Venture Disposition Agreement. It does not include the full contract language or spell out what happens to day-to-day operations at BlueOval SK after Ford’s impairment and disposition, according to the SEC filing. There are no direct quotes from Ford or SK On executives explaining why they chose this path or what it means for long-term EV battery strategy.
For readers in Kentucky, the most immediate step is to connect with state workforce agencies that administer federal grants and to use tools like elaws and apprenticeship portals to check eligibility for training or apprenticeship slots. The next thing to watch will be whether BLS employment data for manufacturing and battery-related categories in Kentucky show a clear decline in job postings and payrolls tied to EV batteries over the next two quarters. That pattern will help reveal whether Ford’s decision is a one-off corporate reset or an early sign of slower battery job growth in the state.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
