Ford Motor Company announced today that it will be cutting 3,800 jobs in Europe in an effort to revamp its electric vehicle production. This is part of a larger effort to reduce staff by one in nine jobs in Europe, as well as one in five jobs in the UK.
Ford’s Chief Executive Officer, Jim Farley, said in a statement that the company is “taking decisive action to transform the Ford business in Europe.” He added, “We are building a strong and sustainable Ford business in Europe and this requires us to make some difficult decisions, including the need to reduce our workforce.”
The job cuts are expected to be completed by the end of this year, and will affect both white-collar and blue-collar workers. Ford is offering a voluntary separation program to those affected, as well as a severance package and outplacement services.
The move comes as Ford is shifting its focus to electric vehicles in an effort to meet the European Union’s goals for reducing carbon emissions. The company is investing heavily in electric vehicle production, and expects to launch its first all-electric model in 2023.
The job cuts will have an impact on the European economy, as many of the affected workers are based in the UK, Germany, and Spain. However, Ford is hoping that the shift to electric vehicles will create new jobs in the long run.
Ford’s announcement has sparked debate, with some arguing that the job cuts are necessary for the company to remain competitive, while others are concerned about the impact on workers.