Ford has joined the infamous list of companies that are laying off employees en masse, leaving 3,800 people out of work. Jobs in the administrative sector and in the field of product development, with a three-year plan for this space to be freed. They are looking to cut costs and keep the structure as compact as possible, the company says.

The biggest entry point will be Germany, where 2,300 layoffs are projected by early 2026. Another target for the company is the UK, where it plans to lay off 1,300 employees. The remaining vacancies will be reduced in other branches scattered throughout Europe, without specifying their number and the number for each country on the continent. To give you an idea, 1 in 9 jobs will be vacant across the region.

Ford’s plan is to focus on electric vehicle manufacturing, which would require a dramatic change to its current format. However, she promised to keep a team of engineers to provide the technology they will need in this new phase. The general intention of automakers is that by 2035 all of Europe will have a 100% working electric fleet.

Ford head in Germany says new times will come

The head of Ford’s German division, Martin Sander, who also handles the passenger electric vehicle sector, says features will decrease with current designs. “There is less work to be done with the transmission coming out of internal combustion engines. We are moving into a world with fewer global platforms where less engineering work is required. That’s why we have to make these adjustments.”

Sander also argues that the market is different and they need to adapt. “We are preparing our company to compete and win in a region facing unprecedented economic and geopolitical instability.”

Another factor that could explain the layoffs is the downturn seen in the 2022 period, when Ford’s financial report recorded a $2 billion drop in profits. During his presentation, the company’s chief financial officer, John Lawler, said he would make “aggressive” cuts to cut costs and contain losses over the 2023-2024 period.

More layoffs than expected

According to the Reuters website, Ford-linked unions said in January that there would be around 3,200 layoffs in the worst case for essential tasks. As for another 600, it is likely that plans have changed or intend to change the working system in their factories to keep everything in full working order.

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Source: Reuters.

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