Cologne, November 23: US-based automobile giant Ford has announced its new round of layoffs as the year is about to end. The latest round of Ford layoffs will affect nearly 4,000 employees working in Germany. Moreover, the automobile layoffs will affect other countries like the UK, where the company will let go 800 people. These job cuts will impact 14% of the company’s workforce as the car company struggles with its passenger vehicles.
According to a report by Strait Arrow News, Ford incurred financial losses due to its passenger vehicles, which were attributed to a shift and emphasis on electric cars, which the company called “highly disruptive.” While there is a rise in EV adoption worldwide, companies like Rolls Royce have also announced that their upcoming cars will be electric. Ola Electric Layoffs: Bhavish Aggarwal-Led EV Firm To Lay Off 500 Employees Amid Restructuring Efforts.
Ford CFO John Lawler, in a letter addressing the government amid 0the company’s struggle with lack of demand and carbon dioxide regulations. He said that Germany lacked a policy on how to advance with “mobility. The letter also said that the country lacked public investment and charging stations. Besides, John Lawler stressed that the country did not offer incentives to consumers to encourage them to buy electric vehicles and meet the CO2 compliance targets.
The report mentioned that lower-than-expected demand affected the production of two new vehicles, the Ford Explorer and the Ford Capri. The Ford layoffs were announced following the poor demand the US automobile company met. The job cuts announced by Ford would lead to a reduction of its workforce in Germany by early 2025. Volkswagen Layoffs Coming? Volkswagen Might Shut Plants in Germany, End Job Security Scheme as Part of Cost-Cutting Measures.
The announcement of the new Ford layoffs is the company’s second-biggest effort to reduce its workforce in Germany. Earlier, the automobile giant announced layoffs of 3,800 workers in Europe. Now, the company is aiming to slash 4,800 jobs as its struggles with low demand continue.
(The above story first appeared on LatestLY on Nov 23, 2024 10:49 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
