As it prepares to convert to the production of a smaller range of electric vehicles, US automaker Ford plans to eliminate 3,800 jobs around Europe, including 1,300 in the UK and 2,300 in Germany. One out of every nine jobs will be eliminated as part of the company’s global cost-cutting initiative. The US automaker claimed that, as it restructures to lay off workers in Europe responsible for product development and administration, a focus on EV manufacturing is urgently needed. About 2,300 employees, or one in every nine positions, will be let go by the corporation in Germany, 1,300 in the UK, and 200 in the rest of Europe.
Ford says it wants to reduce staff through voluntary schemes
Ford says it wants to reduce staff through voluntary schemes. The company said the planned layoffs were needed to “revitalize business in Europe.” According to Ford, the job losses will result in a “leaner, more competitive cost structure”. “These are difficult decisions, not taken lightly,” said Martin Sander, Ford’s European electric vehicle (EV) operation and head of its German business. “We recognize the uncertainty it creates for our team, and I assure them we will be offering them our full support in the months ahead,” Sander said.Â
According to the automaker, the restructuring will provide it access to a prosperous future and enable it to compete with competing automakers in Europe. In recent years, the European continent has faced significant economic and political challenges. Ford is investing $50 billion to electrify its product line. To balance rising expenses, Ford is converting to a smaller range with higher prices. In order to enhance the foundational technology provided by their American counterparts and modify it for European consumers, the US company will keep roughly 3,400 engineers in Europe.
