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

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

Ford is cutting 2,300 jobs in Germany, citing the need to be 'leaner'
Ford is cutting 2,300 jobs in Germany, citing the need to be 'leaner'. Photo: Oliver Berg / POOL/AFP/File
Source: AFP

PAY ATTENTION: Celebrate South African innovators, leaders and trailblazers with us! Click to check out Women of Wonder 2022 by Briefly News!

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.

Read also

Japan GDP rebounds less than expected in fourth quarter

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

PAY ATTENTION: Click “See First” under the “Following” tab to see Briefly News on your News Feed!

"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.

Read also

Hungary protests against Chinese battery plant defy 'Orbanomics'

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.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.