Ford to Cut 800 Jobs in the UK as Part of Cost-Cutting Programme
Ford has announced plans to cut 800 jobs in the UK as part of a major cost-cutting programme aimed at reducing 4000 jobs in Europe. The move comes as the company expresses concerns over the “health” of its passenger car business.
The decision to cut jobs is a result of significant losses incurred by Ford in recent years, which the company attributes to industry disruption and unprecedented competitive, economic, and regulatory challenges.
Dave Johnston, Ford’s European vice president for transformation and partnership, emphasized the need for decisive action to ensure the company’s future competitiveness in Europe. He stated that Ford is committed to building a thriving business in Europe for generations to come.
The job cuts are expected to be completed by the end of 2027 and will help create a more cost-competitive structure for Ford in Europe. While the specific details of which jobs will be affected and where have not been announced, Ford has indicated that the cuts will primarily impact operations in Germany and the UK, with minimal reductions in other European markets.
In the UK, Ford operates an engine factory in Dagenham and a transmission plant in Halewood, with a workforce of approximately 5300 employees. In Germany, the company has two vehicle production plants in Cologne and Saarlouis, employing around 4000 workers.
The recent announcement follows Ford’s strategic shift towards electric vehicles, with the company discontinuing popular ICE models like the Fiesta and Focus in favor of new electric models such as the Explorer and Capri. The industry’s transition to electric vehicles has been described as “highly disruptive” by Ford.
In light of the challenges posed by the shift to EVs, Ford’s electric vehicle boss Marin Gjaja has expressed concerns about the company’s ambitious plan to go all-electric by 2030 in Europe. He cited uncertainty around EV demand and legislation as factors influencing the decision to continue investing in hybrid powertrains.
