Belgium, (Brussels Morning Newspaper) US automaker Ford has announced plans to cut nearly 4,000 jobs in Europe, including 2,300 in Germany, 1,300 in the UK, and 200 in other countries.
The company stressed that the move is part of the transformation of its operations in Europe, noting that businesses are scrambling to meet EU’s environmental targets, according to DW reporting on Tuesday.
Ford stressed that Europe was a “highly competitive region that is facing significant economic and geopolitical headwinds,” adding that it plans to make its operations there “leaner” and “more cost-competitive.”
The company announced it would cut “3,800 jobs over the next three years,” of which approximately 2,300 in Germany, which hosts Ford’s European headquarters.
Martin Sander, Ford’s general manager for Model e in Europe, stressed “these are difficult decisions, not taken lightly.”
In a press release, he noted that Ford recognizes the uncertainty that the move “creates for our team and I assure them we will be offering our full support in the months ahead.”
Sander concluded that Ford will “engage in consultations with our social partners so we can move forward together on building a thriving future for our business in Europe.”
Move towards electric
The company pointed out that planned layoffs are due to its efforts to move away from internal combustion engines, stressing that the majority will be in the engineering sector as electric motors have lower complexity and fewer moving parts.
Ford will cut roughly 1,700 engineering jobs in Germany, about 1,000 in the UK, and approximately 100 in other countries in Europe. It will cut some 600 administrative jobs in Germany, followed by the UK with 300 and other countries with 100.
The company stressed that the figures are subject to consultation and added that it plans to achieve the cuts through voluntary programs.
In March last year, Ford announced plans to invest approximately USD 2 billion in Germany, where it is planning to produce its first fully electric car later this year.
The company is looking to stop producing some models with internal combustion engines in Germany and Spain this year.
Last year, it announced plans to cut approximately 3,000 jobs in India and the US as part of its move towards electric vehicles.