Ford To Slash 3,800 Jobs In Germany, UK To Focus On EV Segment

Ford's job cut would impact 2,300 positions in product development and administrative functions in Germany, 1,300 in Britain and another 200 elsewhere in Europe over the next three years

After the massive layoffs witnessed in the technology sector, the US automaker Ford on Tuesday announced it would slash 3,800 jobs in Europe, mostly in Britain and Germany citing competition in the electric car segment.

The job cuts would impact 2,300 positions in product development and administrative functions in Germany, 1,300 in Britain, and another 200 elsewhere in Europe over the next three years, reported news agency AFP.

"These are difficult decisions, not taken lightly," said Martin Sander, general manager of Ford Model in Europe as quoted in the report. "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.

What prompted the layoff at Ford?

The move is aimed at fortifying its business in Europe and targeting profitably with a new line-up of passenger vehicles. "The company is taking action to restructure its business in Europe, creating a leaner, more competitive cost structure," the company said.

The automaker also said it is "responding to rapidly changing market conditions and a growing field of electric vehicle competitors entering the market". The layoffs in Germany are lower than the 3,200 layoffs that the IG Metall union had expected in January. The union was quite relieved and stated the move "includes cost savings for the company and also safeguards its German sites".

However, the union statement also raised concerns about automation saying the Ford case "shows that in an era of increasing digitalisation and globalisation, it is not just assembly and production jobs that could be relocated, but also those of highly qualified (workers)".

The job cut will be planned through voluntary departures and the company would maintain an engineering organisation of almost 3,400 roles in Europe focusing on vehicle design and development.

Last year, the auto giant announced job cuts in the United States and India. Ford plunged into the red last year with a $2-billion loss.

The company noted that its plan to provide 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.