Ford announced plans to cut 3,800 jobs in Europe over the next three years as part of its strategy to streamline operations and prioritize electric vehicle production.
The cuts will include 2,300 jobs in production development and administration in Germany, 1,300 in the U.K., and 200 elsewhere in Europe, but roughly 3,400 engineering roles in vehicle design and development will be retained, alongside the creation of linked services.
Despite the overhaul, Ford is committed to offering an all-electric fleet by 2035, with production of its first European-built electric passenger vehicle set to begin later this year. The automaker currently employs around 34,000 people in Europe.
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“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,” said Martin Sander, general manager of Ford Model e 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 is undergoing a restructuring effort following a challenging fourth quarter in which earnings were down $11 billion from the same period in the previous year, and sales fell short by 100,000 units.
The company’s Chief Financial Officer identified execution and supply chain management challenges as the main causes of the slump. Ford CEO Jim Farley said the company needs to change its cost profile, but emphasized that job cuts are not the only solution.
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He indicated that a redesign of work processes is necessary to ensure sustainable efficiency. Despite investing $50 billion in electric vehicles and related technology by 2026, Ford’s EV business is not yet profitable, according to Farley. The automaker recently announced plans to increase output and lower prices for its electric Mustang Mach-E crossover, following a similar move by Tesla.
