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Business performanceLatest NewsManufacturingGermanyJob creation and losses

Ford to axe 4,000 jobs in Europe

by Kavitha Sivasubramaniam 21 Nov 2024
by Kavitha Sivasubramaniam 21 Nov 2024 Shutterstock / Jonathan Weiss
Shutterstock / Jonathan Weiss

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”.

Automotive sector jobs

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“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.

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Kavitha Sivasubramaniam

Kavitha Sivasubramaniam is an experienced journalist, editor and communications professional who has been working in B2B publishing for more than 17 years. After graduating from Bournemouth University with a degree in Multi Media Journalism, Kavitha started her career in local and regional newspapers, before moving to consumer magazines and later trade titles, as well as PR. Specialising in pay and reward, she has been editor of a number of HR publications including Pay & Benefits, Employee Benefits, Benefits Expert, Reward and CIPP’s membership magazine, Professional. In June 2024, she won Pay, Reward and Employee Benefits Journalist of the Year at the Willis Towers Watson media awards. She was also named one of Each Person’s top 20 influential HR bloggers and managed a highly commended content team of the year in 2019.

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