Connect with us

Hi, what are you looking for?

Business

Ford to cut 3,800 jobs in Europe, mostly Germany, UK

US automaker Ford said Tuesday it would cut 3,800 jobs in Europe, mostly in Britain and Germany.

Ford is cutting 2,300 jobs in Germany, citing the need to be 'leaner' - Copyright AFP FRED DUFOUR
Ford is cutting 2,300 jobs in Germany, citing the need to be 'leaner' - Copyright AFP FRED DUFOUR

US automaker Ford said Tuesday it would cut 3,800 jobs in Europe, mostly in Britain and Germany, as competition in the electric car sector intensifies.

The company said 2,300 positions in product development and administrative functions would be slashed in Germany, 1,300 in Britain and another 200 elsewhere in Europe over the next three years.

“These are difficult decisions, not taken lightly,” said Martin Sander, general manager of Ford Model e in Europe.

“We recognise 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.

The company said the decision was aimed at revitalising its business in Europe and competing profitably with a new line-up of passenger vehicles.

The job cuts in Germany are lower than the 3,200 layoffs that the IG Metall union had expected in January.

“The company is taking action to restructure its business in Europe, creating a leaner, more competitive cost structure,” Ford said.

The company said it was “responding to rapidly changing market conditions and a growing field of electric vehicle competitors entering the market”.

Ford said the job reductions would be done through voluntary departures and that it would maintain an engineering organisation of around 3,400 roles in Europe focusing on vehicle design and development.

The US auto giant announced thousands of job cuts in the United States and India last year.

Ford fell into the red last year with a $2-billion loss.

– ‘Unapologetically American –

Like its rivals, Ford has invested heavily in electric vehicles, unveiling emission-free versions of best-selling autos like the F-series pickup truck.

Ford said its plan to offer an all-electric fleet in Europe by 2035 was “unchanged”.

“We are completely reinventing the Ford brand in Europe. Unapologetically American, outstanding design and connected services that will differentiate Ford and delight our customers in Europe,” Sander said.

“We are ready to compete and win in Europe. Our first European-built electric passenger vehicle is being introduced this spring and will surely turn heads.”

The EU has agreed to ban sales of new petrol and diesel cars from 2035 as part of the 27-nation bloc’s effort to build a carbon-neutral economy by 2050.

Electric car sales set a new market share record in the European Union in 2022, accounting for 12.1 percent of new sales compared to 9.1 percent in 2021, according to industry figures.

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

World

Calling for urgent action is the international medical humanitarian organization Doctors Without Borders/Médecins Sans Frontières (MSF)

Business

The cathedral is on track to reopen on December 8 - Copyright AFP Ludovic MARINParis’s Notre-Dame Cathedral, ravaged by fire in 2019, is on...

Business

Saudi Aramco President & CEO Amin Nasser speaks during the CERAWeek oil summit in Houston, Texas - Copyright AFP Mark FelixPointing to the still...

Business

A recent article in the Wall Street Journal infers that some workers might be falling out of the job market altogether.