Ford Motor plans to layoff up to 3,200 employees across Europe: Report
Ford already reduced 3,000 jobs in the second half of last year, primarily in the United States. CEO Jim Farley is aiming for $3 billion in cost cuts as he seeks to increase profits from traditional internal combustion engine models to help finance the $50 billion he is investing in developing electric vehicles.
FollowFord Motor Co. intends to reduce its staff by 3,200 in Europe, following the workforce reductions in the United States as the automaker cuts cost as it transitions to electric vehicles.
The IG Metall union said after an extraordinary works council meeting at the carmaker's factory in Cologne that most of the affected positions are concentrated in Germany, affecting roles in product development and administrative areas. The cuts would affect approximately 65 per cent of development jobs in Europe.
According to an IG Metall statement, development activities in Germany will be relocated to the United States.Â
Ford already reduced 3,000 jobs in the second half of last year, primarily in the United States. CEO Jim Farley is aiming for $3 billion in cost cuts as he seeks to increase profits from traditional internal combustion engine models to help finance the $50 billion he is investing in developing electric vehicles.
After Bloomberg broke the news of the upcoming layoffs, Farley told analysts in July, "There is no doubt that we have too many people in some places. We have skills that are no longer useful and jobs that need to change."
Ford, however, has refused to confirm the cuts in Europe, saying that 'no decisions have been made.' After struggling to maintain market share for its passenger car lineup amid disappointing returns, the company has revamped its European presence. Its local commercial vehicle manufacturing arm has been a shining light.
In June, Ford warned of layoffs in Europe, stating that the development and production of electric vehicles demand less labour. The company intends to go almost entirely electric in the region by the decade's end.Â
Ford employs approximately 4,600 people at the Saarlouis plant in Germany, where the Focus model will be phased out by 2025, with no plans to produce any other vehicles there after that. The company is looking for alternatives for the site while remaining committed to a $2 billion EV investment at its key European production site in Cologne, where Ford employs approximately 14,000 people.
After years of restructuring that saw the carmaker close or sell several factories and lay off thousands of workers, the US manufacturer's presence in the region has been downward. According to the European Automobile Manufacturers' Association, its passenger car market share was 4.4 per cent last year, with sales totalling just over 510,000 vehicles.
Ford formed an initial alliance with Volkswagen AG several years ago to jointly work on EVs to accelerate its EV rollout plan. This year, the company will launch an all-electric crossover model based on VW's modular platform, MEB, with plans to expand.
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