Ford to cut 3,800 jobs in Europe in shift to electric vehicle production
CNBCFeb 14, 2023
US automaker Ford said Tuesday it plans to cut thousands of jobs across Europe over the next three years as part of a global effort to reduce costs and be competitive in the electric vehicle market.
Ford plans to cut one in nine jobs, approximately 3.8k jobs total, including 2.3k at the carmaker's Cologne and Aachen sites in Germany, 1.3k in the UK, and 200 in the rest of Europe. The company plans to achieve reductions through voluntary programs.
The competition in the EV market is stiff, and after a brutal fourth quarter, Ford needs to make some painful changes. Ford isn’t just cutting jobs; it’s restructuring how it operates in an attempt to turn things around and be successful in the long term, in addition to the short term.
German trade unions can't tolerate these types of job cuts, and they’ve sounded a warning to Ford not to go through with them. If talks with Ford fail, however, the unions can — and likely will — bring Europe-wide disruptions that will seriously impact the company.
There's a 50% chance that there will be at least 12.8M new electric vehicles registered worldwide, in the calendar year 2023, according to Metaculus prediction community.