Ford Will Lay Off 3,800 People in Its Cost-Cutting Plan

Written by Roberta Souza

Published on 14/02/2023 at 17:51

Foto: Reprodução pinterest

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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.

Ford Will Lay Off 3,800 People in Its Cost-Cutting Plan

The Cut Will Be Made In Europe And Will Focus On Engineering And Administration Sectors

Ford’s Electrification Strategy Also Motivated The Layoffs

Other Large Layoffs Made By Ford In Recent Years

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Ford Will Lay Off 3,800 People in Its Cost-Cutting Plan

The Cut Will Be Made In Europe And Will Focus On Engineering And Administration Sectors

Ford’s Electrification Strategy Also Motivated The Layoffs

Other Large Layoffs Made By Ford In Recent Years

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

Engineers want to carve through Africa with a giant canal to bring water from the world’s second-largest river to a dying lake on the edge of the Sahara Desert that has already lost 90% of its water.

China has deployed snake-shaped robots to slide along power lines, where they have already inspected over 130 kilometers of cables using cameras and sensors to detect damaged wires, worn-out parts, and overheating.

Paper money is disappearing from Brazilians’ pockets, with the issuance of new banknotes dropping by 31% from 2020 to 2025, amid the explosion of Pix, which became the most frequent payment method for 46% of the population, while cash plummeted from 42% to 22%.

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