American carmaker Ford announced Monday it’s cutting 3,000 jobs in an attempt to lower costs. The cuts affect 2,000 salaried employees and another thousand contract workers, mostly in the U.S., Canada and India.

The job cuts come as the company is undertaking a massive shift towards connected and electric vehicles, says Jessica Caldwell, executive director of Insights at Edmunds.

“It’s going to require so many resources, particularly research and development, as they work towards those goals,” said Caldwell. “That they really, really have to scale down on any expenses that are not necessary.”

Ford isn’t the only longtime player trying to navigate the transition.

“Every automaker, currently supplying automobiles, at volume to the market are either going through this or will be going through this,” said Flavio Volpe, President of Canada’s Automotive Parts Manufacturers Association.

Volpe says moving away from internal combustion engine vehicles requires a different set of skills in areas like AI and machine learning.

Ford says even amid the current job cuts, it’s hiring for new positions, including in departments that make electric vehicles.