Ford to cut 3,800 engineering, administration jobs in Europe

File Picture

Ford plans to cut 3,800 product development and administration jobs in Europe in the next three years, the company said on Tuesday, citing rising costs and the need for a leaner structure as it pivots production to electric vehicles.

Around 2,300 jobs will go at the carmaker's Cologne and Aachen sites in Germany, 1,300 in the UK and 200 in the rest of Europe, the company said, adding that it intends to achieve the reductions through voluntary separation programmes.

The news comes as a blow to unions who said in late January that the worst-case scenario on the table was 2,500 job cuts in Europe.

The American carmaker will retain around 3,400 engineers in the region who will build on core technology provided by their US counterparts and adapt it to European customers, European passenger electric vehicle (EV) chief and head of Ford Germany Martin Sander said on a press call.

"There is significantly less work to be done on drivetrains moving out of combustion engines. We are moving into a world with less global platforms where less engineering work is necessary. This is why we have to make the adjustments," Sander said.

Nothing has changed in the carmaker's electrification strategy, Sander said, with the goal of offering an all-electric fleet in Europe by 2035 still in place.

Ford is due to launch its first electric vehicle in Europe built on Volkswagen's MEB platform in Cologne later this year and is considering bringing a Ford platform to Europe, possibly to its plant in Valencia, Sander said.

"We are preparing our organisation to compete and win in a region facing unprecedented economic and geopolitical headwinds," he said.

More from Business