Ford to cut workforce by 4,000 in Europe and UK
Of the total, 2,900 jobs would be lost in Germany, 800 in Britain and 300 in other EU countries. Ford has 28,000 employees in Europe and 174,000 worldwide.
Ford Motor Co. is reducing its workforce by 4,000 in Europe and the UK by the end of 2027.
The company attributed this move to headwinds from the economy, pressure from rising competition and lukewarm sales of electric cars.
Most of the job cuts will be in Germany and carried out in consultation with employee representatives, the company said.
Of the total, 2,900 jobs would be lost in Germany, 800 in Britain and 300 in other EU countries. Ford has 28,000 employees in Europe and 174,000 worldwide.
“The global auto industry continues to be in a period of significant disruption as it shifts to electrified mobility,” Ford said in a statement. “The transformation is particularly intense in Europe where automakers face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles.”
According to Dave Johnston, Ford’s European vice president for transformation and partnerships, it was “critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”
The 800 jobs in the UK will be slashed over the next three years. Ford has 5,300 employees in the UK.
“Making this announcement isn’t something that anybody wants to do, and I appreciate it will have a very significant impact on our employees,” said Lisa Brankin, managing director of Ford of Britain and Ireland. “It’s not the news anyone wants to hear at any time. So our aim is to try to deliver this through voluntary redundancy.”
In Europe, automakers must sell enough EVs to meet limits for carbon dioxide emissions. The 2035 EU goal of reducing emissions to zero means the end of most vehicles with internal combustion engines, according to a report by Associated Press.
Ford sales fell 15.3% in the first nine months of the year compared to the corresponding period last year. The company’s market share dropped from 3.5% to 3%. Companywide net profit dropped by 26% to USD 892 million in the third quarter.
Another major European automaker, Volkswagen, is also contemplating closing three of its German plants.
In Britain, the government is under pressure from the car industry over rules designed to force them to build more EVs. Under the Zero Emission Vehicle (ZEV) Mandate, at least 22% of cars sold in the UK must be classed as zero emission.