American automaker Ford announced plans to cut 2,500 to 4,000 jobs across Europe and transfer some product development operations to the US, according to Germany‘s IG Metall union on January 23.
If the job cuts materialize, the Metalworkers union has threatened to launch necessary action that would disrupt the automaker across the continent.
Apparently, the move is part of Ford’s broader plan to switch from ICE vehicles like the Fiesta and Focus to EVs like the Mustang Mach-E. However, the unions in Europe are already about to interfere with the sudden job cuts.
Ford’s plan to restructure triggers unions in Europe
The majority of the job cuts will affect Germany, per the IG Metall union. Approximately 1,900 job cuts will reportedly be in Cologne alone to reduce administrative positions at its headquarters.
However, there are reports of significant job cuts at other Ford factories throughout Europe. As the ICE vehicles mentioned earlier are already phased out, its production site at Merkenich may also suffer up to 3,800 job cuts.
According to reports, employment layoffs will also occur at Ford’s technical center in the UK and research center in Aachen, Germany.
It must be noted that the automaker has still yet to decide the ultimate number of job losses until February, as Ford Europe employees were informed. However, the unions supporting those workers are ready to take action if necessary.
“If negotiations between the works council and management in coming weeks do not ensure the future of workers, we will join the process. We will not hold back from measures that could seriously impact the company not just in Germany but Europe-wide.”
IG Metal
Notably, automakers are under pressure to reduce costs due to increasing prices for EV battery components and anticipated slowdowns in the US and European economies. Analysts claim that pressure has increased due to the EV price battle that Tesla started earlier this month.
If employees collaborate and perhaps strike in support of their sacked coworkers, having unions in Europe engaged may undoubtedly impact Ford’s production output abroad. As Ford completes its layoffs and refocuses its development on an all-electric future, we will have to keep an eye on this ongoing issue.
