By Scott Kanowsky
Investing.com -- Ford Motor Company (NYSE:F) will slash 3,800 jobs in Europe over the next three years as part of a push towards producing electric vehicles on the continent, the U.S. automaker said in a statement on Tuesday.
The company added that the reductions will help "revitalize its business" in Europe and allow it to focus on developing a new line-up of cars "differentiated through software and services." Production of Ford's first European-built electric passenger vehicle is due to begin later this year, with the group eventually aiming to offer only non-combustion engine cars in the region by 2035.
“Paving the way to a sustainably profitable future for Ford in Europe requires broad-based actions and changes in the way we develop, build, and sell Ford vehicles. This will impact the organizational structure, talent, and skills we will need in the future,” said Martin Sander, the general manager of the Ford Model e in Europe.
By 2025, Ford will cut 2,800 posts in a bid to overhaul its European engineering footprint. It will also eliminate about 1,000 roles to create a "leaner cost structure" for its administrative, marketing, sales, and distribution operations.
On a country-by-country basis, Germany and the U.K. will be most impacted by the changes. A total of 2,300 jobs will be lost in Germany, while Britain will see 1,300 axed. A further 200 will be cut elsewhere.
The announcement did not specifically mention any potential losses at Ford's Saarlouis plant in Germany. The firm is reportedly in discussions over a possible sale of the site, which currently employs around 4,600 people.