The road to electromobility will still cost many people their jobs – currently around 4,000 employees at Ford in Europe expect the corresponding bad news. They are expected to lose their jobs in 2025.
With 2,300 jobs, more than half of which are at the Cologne and Aachen sites, as Ford explained on a conference call on Tuesday. Austria is not affected by the plans.
“The measures announced today align Ford’s product development organization and administrative functions in Europe with a smaller, more focused and increasingly electric product portfolio,” said German boss Martin Sander. Ford employs a total of 19,000 people in Germany.
The American carmaker wants to get rid of 1,700 developers, plus 600 administrative, marketing and sales employees. Including redundancies in the UK and elsewhere, 3,800 jobs will be affected. The announcement followed weeks of negotiations with the union.
Drastic incision
The group missed its profit targets last year and wants to undergo a radical cure. CFO John Lawler had announced “very aggressive” measures at the balance sheet presentation to reduce costs in manufacturing and supply chain. In Europe, fourth-quarter pre-tax losses reached $400 million, double what they were a year ago on flat sales. Experts also see the job losses in research and development as a result of the partnership with Volkswagen, which Ford has the license to build an electric car based on the MEB electric kit. This saves Ford development costs.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
