Ford announced on Tuesday that it will be cutting 3,800 jobs in Europe as part of a cost-cutting drive. This will amount to one in nine jobs in the region, with 2,300 positions being eliminated in Germany, 1,300 in the UK, and 200 in the rest of Europe. The job cuts are mainly in product development and administration.
The carmaker has stated that the cuts are necessary due to the shift away from combustion engines to electric vehicles, which require less labor. CEO Jim Farley has noted that significant cost-cutting will be necessary to remain competitive in the EV market.
Ford has agreed to no compulsory redundancies at its Cologne or Aachen sites before 2032, providing some relief to workers. The company has also said that it will retain 3,400 engineers in Europe, who will build on core technology from the U.S. and adapt it to European customers.
The news comes as a blow to unions, who had estimated that 2,500 job cuts in product development and 700 in administration were the worst-case scenario. Meanwhile, Ford has announced plans to invest $3.5 billion in a battery factory in Michigan, which will add 2,500 jobs.