Ford To Cut 3,800 Jobs In Europe Over 3 Years Under Transition To Electric Vehicles

Ford will cut 3,800 jobs at its European division, which is around 11% of its local workforce, over the next three years under the shrinking model range and transition to electric vehicles, the company announced on Tuesday

MOSCOW (UrduPoint News / Sputnik - 14th February, 2023) Ford will cut 3,800 jobs at its European division, which is around 11% of its local workforce, over the next three years under the shrinking model range and transition to electric vehicles, the company announced on Tuesday.

"The actions announced today align Ford's product development organization and administrative functions in Europe, with a smaller, more focused, and increasingly electric product portfolio. The plans include the elimination of approximately 3,800 jobs, creating a leaner, more competitive cost structure for Ford in Europe," Ford said in a statement.

Most cuts will be witnessed by R&D departments of Ford's enterprises across Europe, according to the release. This includes, 2,300 people to be fired in Germany, with 1,700 of them from product development departments, and 1,300 positions to be axed in the UK, with 1,000 in product development. The rest 200 jobs will be cut in other countries.

Currently, Ford employs around 34,000 people in Europe, including 6,500 in the UK.

Ford explained this decision by the fact that shrinking and not especially profitable production of cars with internal combustion engines, which is scheduled to be abandoned completely by 2030, together with plans on increased production of electric vehicles will no longer require to maintain extended development teams.

"These are difficult decisions, not taken lightly. 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. We will engage in consultations with our social partners so we can move forward together on building a thriving future for our business in Europe," General Manager of Ford Model E in Europe Martin Sander said.

Ford is also planning to invest over $2 billion in its site in Cologne for future production of electric cars. Additionally, the company said that this staff reduction was a strategic choice and not an urgent reaction to economic instability and recent poor performance.