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The Cut Will Be Made In Europe And Will Focus On Engineering And Administration Sectors
On Tuesday (14), Ford announced its spending cut plan, in which it will lay off 3,800 employees in administration and product development in Europe over the next three years. According to the company, the reason would be the need for a smaller structure, which will require spending cuts in the areas of economy and administration.
The information released by Reuters at the end of January highlights a controversy: unions associated with Ford said that, in a worst-case scenario, a maximum of 3,200 employees would be laid off. In a statement, the automaker stated that the spending cuts were necessary to “revitalize its business in Europe.”
The European head of passenger electric vehicles (EV) and head of Ford Germany, Martin Sander, explained: “There is much less work to be done in the transmission systems that come from combustion engines. We are entering a world with fewer global platforms, where less engineering work is required. That’s why we have to make adjustments.”
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Ford’s Electrification Strategy Also Motivated The Layoffs
According to Olhar Digital, Martin Sander stated that Ford’s strategy remains its electrification, and that the spending cuts follow this line. The increasing production of electric cars dispenses many jobs. The idea is for Europe to have a fully electric fleet operating by 2035, so further large layoffs are expected to occur.
“We are preparing our organization to compete and win in a region facing unprecedented economic and geopolitical headwinds,” concluded the European head of electric vehicles.
Other Large Layoffs Made By Ford In Recent Years
Ford has already carried out other mass layoffs on the European continent. Both in 2019 and 2020, the automaker used this strategy aiming for an operating margin of 6% in the region. However, this goal was derailed by the COVID-19 pandemic.
Yet, despite the layoffs, the car factory clarified that it will still maintain around 3,400 engineers in Europe, responsible for developing basic technology adapted for European customers.
