Ford to axe 4,000 jobs in Europe

Posted by Admin November 21, 2024 Jobs

Ford plans to cut 4,000 jobs in Europe, including around 800 in the UK, following a slump in electric vehicle (EV) sales.

The carmaker, which employs 5,300 in Britain and has a total global workforce of 174,000, is reducing its overall headcount by 2.3% as it aims to establish a “more cost-competitive structure”.

Roles at risk include those in administration, development and commercial teams, with the redundancies expected to be made by the end of 2027.

According to the business, while most of the roles affected will be those in Germany and Britain, there will be “minimal reductions in other European markets”.

Ford said the move to slash 14% of its European workforce was also a result of poor support from the government on the shift towards EVs and competition from the subsidised Chinese carmakers.

It added that in Europe the industry “faces unprecedented competitive, regulatory, and economic headwinds”.

“Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come,” said Dave Johnston, Ford’s European vice president for transformation and partnerships. “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”

The company also plans to adjust the production programme for its new Explorer and Capri models, which will mean additional short-time working days at its plant in Cologne during the first quarter of 2025.

According to Ford, carmakers in Europe are struggling with the shift towards EV usage due to “significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles”.

It recently called on all industry stakeholders to work together to help improve market conditions and ensure its future success.

The move follows that of other carmakers grappling with the challenges faced by the industry.

Earlier this month, Nissan announced it was slashing 9,000 jobs globally, while its chief executive took a 50% pay cut in a bid to curb its losses.

Last month, Volkswagen also said it intended to shut at least three factories in Germany, cut pay by 10% and put tens of thousands of jobs at risk of redundancy.