Ford Motor Company (NYSE:F) is reportedly planning additional job cuts across its operations in Germany, Spain, and the U.K.
This development is part of a broader strategy to streamline its workforce in Europe, particularly as the company shifts its focus towards electric vehicle (EV) production.
According to Benjamin Gruschka, the head of the workers' council at Ford's Cologne plant, the specifics of the job cuts in Germany remain unclear but are expected to be defined by the end of June, reported Reuters.
The decision comes in addition to a previous restructuring initiative.
Ford has already implemented significant workforce reductions, having completed half of its planned 2,300 job cuts in Germany, reducing its staff to 13,000.
Also Read: Ford To Allow All US Dealers To Sell Electric Vehicles, Scraps Model E Program
Ford recently announced plans to cut up to 1,600 jobs at its Valencia plant as part of ongoing adjustments to optimize its production capacity and efficiency.
Last year, Ford disclosed plans to eliminate 3,800 jobs across Europe due to the operational needs of EV production, which typically requires fewer personnel compared to traditional car manufacturing.
This move reflects Ford's strategic pivot toward sustainable automotive solutions and aligns with industry-wide trends toward electric mobility.
Ford sold a total of 8,966 EVs in the U.S. in May, marking a near 65% jump from 2023 when it sold just 5,444 units.
For 2024, Ford expects its EV division to post an EBIT loss between $5.5 billion and $5 billion, wider than the $4.7 billion loss recorded in 2023.
Ford stock has lost more than 16% in the last 12 months. Investors can gain exposure to the stock via Schwab U.S. Dividend Equity ETF (NYSE:SCHD) and IShares MSCI USA Value Factor ET (BATS:VLUE).
Price Action: F shares are trading lower by 0.34% at $11.80 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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