Hundreds of jobs are reportedly set to be cut as Ford Australia further slims down its domestic operations.

Union leaders estimate about 400 jobs would be affected, mostly in Geelong, Victoria.

Ford Australia has been contacted for comment.

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AMWU Vehicle Industry Coordinator Vince Pepi said the move was "disheartening" but believed the redundancies would be voluntary.

About 350 jobs will include white-collar workers with the remainder to be blue-collar workers, the union said.

"We understand that this news will be difficult for many workers and their families, and we want to ensure they have all the resources they need," Pepi said.

"We will continue to work closely with our members and their Ford management as the situation progresses."

A Ford Australia spokesperson told Drive.com.au the changes were part of a worldwide drive to "improve efficiency".

"We have begun consultation with our employees and unions on our intention to offer a separation program for approximately 400 of our 1800 employees in Australia," the spokesperson said.

Ford previously projected about 3000 job losses worldwide as the company shifted toward electric car production.

Drive.com.au reported that accompanied by previous cuts, the 400 new job losses meant Ford Australia's staff would be down by about 900 on this time in 2022.

The redundancies are expected to take effect in September.

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