There is more bad news for the electric vehicle industry.

CNN reported Monday that automobile giant Ford will lay off about 700 employees responsible for assembling the F-150 Lightning, the electric version of its highly popular pickup truck, at the Rouge Electric Vehicle Center in Dearborn, Michigan, close to its main headquarters.

“We are adjusting the schedule at the Rouge Electric Vehicle Center because of multiple constraints, including the supply chain and working through processing and delivering vehicles held for quality checks after restarting production in August,” the company said in a statement.

Ford said the layoffs were unrelated to the ongoing strike by the United Auto Workers union, according to CNN.

Last month, UAW President Shawn Fain said any layoffs by the company would be an effort to “put the squeeze on our members to settle for less.”

However, The Wall Street Journal reported last week that it had obtained a memo from a UAW leader expressing concerns about falling demand for Ford’s electric pickup.

“It doesn’t take a rocket scientist to figure out that our sales for the Lightning have tanked,” the memo said.

The electric truck, which came to market in April 2022, has been a pivotal component of Ford’s EV strategy. Its production was widely seen as a strategic maneuver by the company to leverage its strong brand appeal among pickup enthusiasts.

Declining demand also explains why Ford has implemented substantial price reductions for the model.

CarsDirect reported last week that the automaker is providing $7,500 in incentives for the Lariat and Platinum trims, which, when combined with federal tax cuts, could amount to a significant $15,000 reduction from the original retail price.

In July, Ford announced it expected to lose a staggering $4.5 billion on its electric vehicle line this year alone.

“For its transparent, customer-centered business units, Ford now expects full-year [earnings before interest and taxes] … [t]o be a loss of about $4.5 billion for Ford Model e, reflecting the pricing environment, disciplined investments in new products and capacity, and other costs,” the company said in a news release.

Nevertheless, the company said it still expected to reach profitability as the adoption of electric vehicles accelerates.

“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” CEO Jim Farley said in a statement at the time.

“[W]hile others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away,” Farley said.

This article appeared originally on The Western Journal.