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Ford announces 4,000 job losses as hundreds of employees in UK affected

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1 month ago

November 20, 2024

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Ford announces 4,000 job losses as hundreds of employees in UK affected

Ford, the car manufacturing giant, has announced plans to cut approximately 800 jobs across the UK over the next three years as part of a broader European job reduction strategy.

The company stated that these UK job cuts are part of a larger plan to eliminate 4,000 roles across Europe by the end of 2027 in an effort to reduce costs. The majority of the job losses will be in Germany and the UK, with “minimal reductions” in other European markets.

Ford highlighted that its passenger vehicle business in Europe has suffered “incurred significant losses in recent years”. Additionally, it noted that the transition to electric vehicles and new market competition has been “highly disruptive”.

A Ford spokesperson said said the overhaul is aimed to “create a more cost-competitive structure and ensure the long-term sustainability” of the business in Europe.

The company said it comes amid pressure from “lower-than-expected demand” for its electric cars. It did not disclose which UK sites are set to be impacted by the proposed job cuts.

Dave Johnston, Ford’s European vice president for transformation and partnerships, said: “We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come.

“It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”

Earlier this year, Ford CEO Jim Farley warned the company will “not invest” in electric cars unless it was profitable and they vehicles were affordable. Mr Farley even stressed that the future of motoring may not be fully EV with a potential respite for petrol and diesel models in some capacity.

It comes after Ford’s electric vehicle unit reported heavy in the first quarter with figures amounting to $1.3 billion (£1billion) across the first three months of the year. Back in 2021, Ford confirmed that 100 percent of Ford’s passenger vehicle range in Europe will be zero-emissions capable by 2026 before becoming all-electric by 2030.

Ford UK have since pushed this back to 2035.

Back in June, Farley said: “First of all we are not going to invest in the future of EVs unless we’re convinced we’ll be profitable. That’s my job. I’m not going to allocate capital to my leadership team or anyone in the company if we don’t think we are going to be profitable in the next cycle of products. That aspect is undeniable, it’s non-negotiable.

“We really believe in the consumer experience for EVs and so we want the next ones to be more affordable and that’s why we are investing in more affordable EVs in the next cycle.” Mr Farley claimed it was likely that the firm would begin turning profits on EVs within “a couple of years”.