US motor giant Ford plans to cut 3,800 jobs across Europe, including 1,300 in the UK and 2,300 in Germany, as it positions to switch to the production of a smaller range of electric vehicles.
The company’s plan to cut one in nine jobs is part of its global drive to cut costs.
The US carmaker said the focus on EV manufacturing is the need of the hour as it restructures to let go of product development and administration staff in Europe.
In Germany, the company plans to lay off around 2,300 staff, about 1,300 in the UK, and 200 in the rest of Europe, which is about one in nine jobs.
Ford says it wants to reduce staff through voluntary schemes. The company said the planned layoffs were needed to “revitalise business in Europe”.
According to Ford, the job losses will result in a “leaner, more competitive cost structure”.
Ford to cut 3200 jobs in Europe, aims to move some product development back
“These are difficult decisions, not taken lightly,” said Martin Sander, Ford’s European electric vehicle (EV) operation and head of its German business.
“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 carmaker said that the shakeup will open the door to a lucrative future and allow it to compete with rival automakers in Europe.
The European continent has seen considerable economic and political difficulties in recent years.
Ford is investing $50 billion to electrify its line of products, switching to a smaller range with higher prices to offset rising costs.
The US firm will retain about 3,400 engineers in Europe to improve on the basic technology offered by their American counterparts and adapt it for European customers.
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