The Layoffs Continue: Ford To Cut 3,800 Workers In Europe

While the country gushes over recent aberrant jobs numbers, the actual reality of what’s happening on the ground can be best exemplified through the actions of companies like Ford. 

The Detroit automaker announced this week it is going to be cutting 3,800 jobs in Europe over the next three years, adding to a growing slate of U.S. based companies and manufacturers looking to cut jobs and tighten budgets as the economy continues to tumble toward recession.  

Ford is blaming the layoffs on “economic headwinds and increased competition in electric vehicles,” according to Reuters/Business Today. 

Specifically, 2,300 jobs are going to be cut in Germany and 1,300 jobs will be cut in the United Kingdom. Ford’s plans of offering an all-electric fleet in Europe by 2035 remains unchanged, the report says. 

The company will begin producing its first European-built electric vehicle this year, the report says. 

The company is seeking a “leaner, more competitive cost structure in Europe”. In sum, the company is looking to cut 2,800 engineering jobs and 1,000 administrative roles by 2025 the report says. 

Martin Sander, the general manager of Ford Model e in Europe commented: “These are difficult decisions, not taken lightly. We recognize the uncertainty it creates for our team, and I assure them we will be offering them our full support in the months ahead.”

Recall we wrote days ago that layoffs would be imminent for Ford. Two weeks ago, during Ford’s earnings call, CEOO Jim Farley said the company needs to reduce costs while shifting to electric vehicles. He added that Ford should have done a better job last year and left $2 billion in profits on the table while semiconductor shortages roiled its supply chain. 

CFO John Lawler also said there would be more white-collar layoffs and that the company needs to reduce manufacturing and warranty costs.