Why is Ford Planning to Eliminate Thousands of Jobs in Europe

Ford in Europe has announced it is taking the next steps in the transformation of its business, responding to rapidly changing market conditions and a growing field of electric vehicle competitors entering the market.

The company has outlined actions that will revitalize its business in Europe and will enable Ford to profitably compete with a new line-up of iconic passenger vehicles, while also extending Ford Pro’s position as the best-selling brand in the commercial vehicle sector.

The actions announced align Ford’s product development organization and administrative functions in Europe, with a smaller, more focused, and increasingly electric product portfolio. The plans include the elimination of approximately 3,800 jobs, creating a leaner, more competitive cost structure for Ford in Europe. Ford will now engage in consultation with its social partners across Europe with the intent to achieve the reductions through voluntary separation programs.

By 2025, Ford plans to resize its European engineering footprint, resulting in 2,800 fewer jobs. These changes are driven by the transition to fully electric powertrains and reduced vehicle complexity. Ford will maintain an engineering organization of approximately 3,400 roles in Europe, focused on vehicle design and development, as well as the creation of connected services.

Additionally, a leaner cost structure will be created for Ford’s administrative, marketing, sales and distribution functions in Europe, which includes the elimination of approximately 1,000 positions.