Ford Motor Co (F) said on Tuesday that it intended to cut one in nine jobs in product development and administration across Europe as part of a global cost-cutting effort.
A total of 3,800 jobs are expected to be cut, including 2,300 at Ford’s Cologne and Aachen facilities in Germany, 1,300 in the United Kingdom and 200 in the rest of Europe.
It added the cuts would be achieved through voluntary programmes.
The company said reductions were required in order to “revitalise business in Europe.”
Ford had announced last year it would spend $50 billion on product range electrification, with higher prices expected to make up for rising costs of EV production.
Ford’s Chief Financial Officer John Lawler had said earlier this month the auto maker faced $5 billion in higher costs this year. He also said Ford would be “very aggressive” in expense reduction in its manufacturing and supply chain operations.
According to the CFO, productivity of engineers in Europe was 25% to 30% lower than expected.
The shares of Ford Motor Company closed 2.83% ($0.36) higher at $13.09 in New York on Monday, with the auto maker’s total market cap now standing at $52.18 billion.
The shares of Ford Motor Co went down 44.01% in 2022, compared with a 19.44% loss for the benchmark index, S&P 500 (SPX).