Ford cutting 3,800 European jobs in EV push
Auto giant cutting global costs to be more effective in growing EV market
Ford announces return to Formula 1 racing
Ford President and CEO Jim Farley and Formula 1 CEO Stefano Domernicali discuss Ford's growth in the auto industry and employment and announce its return to Formula 1 racing.
The Ford Motor Company is shedding around 3,800 jobs in product development and administration across Europe as the U.S. automaker cuts global costs to be more competitive in the electric vehicle market.
One in nine jobs will be lost including 2,300 at the carmaker's Cologne and Aachen sites in Germany, 1,300 in the UK and 200 in the rest of Europe.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 10.81 | +0.09 | +0.79% |
03 May 2021, North Rhine-Westphalia, Cologne: A crane stands in front of the Ford plant in Niehl. (to dpa: "Ford anniversary: 90 years ago, the first model rolled off the production line in Cologne") Photo: Oliver Berg/dpa (Photo by Oliver Berg/pictu (Getty Images)
The U.S. group will retain around 3,400 engineers in Europe, while cuts in the UK, which amount to one in five of the workforce there, will be mostly at the carmaker's research center in Dunton, southeast England.
Ford shares have gained over 12% this year ahead of the S&P 500's 8% rise.
Ford
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The cuts in Germany equate to around 12% of the workforce.
Ford said it intended to achieve the job reductions through voluntary programs.
One year after Ford confirmed construction of the Rouge Electric Vehicle Center in Dearborn, Mich., the first Ford F-150 Lightning pre-production units begin leaving the factory. Pre-production model shown. F-150 Lightning available starting spring 2 (Ford)
The carmaker’s European staff were last hit by job cuts in 2019 and 2020 as Ford worked to achieve a 6% operating margin in the region, a goal thrown off course by the pandemic, with pretax profit margins in Europe in the first nine months of 2022 at just 2.2% of sales.
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Currently, the Michigan-based manufacturer is spending $50 billion to electrifying its product range, pivoting to a slimmer lineup with higher prices to compensate for rising costs of producing electric cars.
Reuters contributed to this report.