Ford in Europe announced plans to cut around 3,800 jobs over the next three years amid rapidly changing market conditions, and in response to growing competition in electric vehicles.
The move comes as the auto maker is preparing to introduce its first European-built electric passenger vehicle this spring.
As part of its restructuring efforts aiming for a more competitive cost structure, Ford plans to align its product development organization and administrative functions in Europe, with a smaller, more focused, and increasingly electric product portfolio.
The company would reduce 2,800 jobs in product development and 1,000 jobs in administrative functions.
Of this, majority will be in Germany and UK. Around 2,300 German jobs will be affected, while 1,300 employees in UK will loose their jobs. Rest of Europe will see a reduction of 200 jobs.
By 2025, Ford plans to resize its European engineering footprint, resulting in 2,800 fewer jobs through transition to fully electric powertrains and reduced vehicle complexity. Ford will maintain an engineering organization of around 3,400 roles in Europe, focused on vehicle design and development, as well as the creation of connected services.
Ford plans to conduct the reductions through voluntary separation programs, and will now engage in consultation with its social partners across Europe for the purpose.
Ford’s actions are expected to revitalize its business in Europe and will enable the firm to profitably compete with a new line-up of iconic passenger vehicles.
Martin Sander, General Manager of Ford Model e in Europe, said, “We are completely reinventing the Ford brand in Europe. … We are ready to compete and win in Europe… Paving the way to a sustainably profitable future for Ford in Europe requires broad-based actions and changes in the way we develop, build, and sell Ford vehicles. This will impact the organizational structure, talent, and skills we will need in the future…. “
Ford further said it will also continue to invest in the design and development of electric passenger vehicles, meeting consumer demand. At the same time, the company will target carbon neutrality across its European facilities, logistics and key suppliers by 2035.
Globally, Ford is investing over $50 billion in EVs through 2026, including various investments in European manufacturing sites.
In March 2022, Ford announced a $2 billion investment into the Cologne site, where the first EVs in Europe will roll off the production line later this year.
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