Ford Cologne restructures: Hire and Fire in Europe

Ford and its employee representation are negotiating an agreement that excludes termination of employment for operational reasons at the Cologne and Aachen sites until the end of 2032. This framework agreement is intended to serve as the basis for accelerating the transformation of the manufacturer's European automotive business. The American manufacturer emphasizes that the transformation is an essential response to the rapidly changing economic conditions.

American-inspired models for Europe

In accordance with the adjustment of the product portfolio to electric vehicles, Ford is also adapting the structure of product development and administration, making the organizations "leaner and more flexible" according to their own statements. With these plans, Ford aims to lay the foundation for a future in Europe with a range of vehicles inspired by Ford's American history. Additionally, intelligent software and services are to be offered.

Ford calls this "the consistent acceleration of the transformation." The company is to be enabled to rejuvenate its business in Europe with a new range of "iconic" passenger cars to compete for market share while simultaneously expanding the position of Ford Pro as the top-selling brand in the commercial vehicle sector.

“We are committed to our customers in Europe. Ford is focused on providing its customers with an exceptional driving experience with outstanding digital services and connectivity to meet their daily mobility needs," said Martin Sander, General Manager of Ford Model e in Europe and Chairman of the Management Board of Ford-Werke GmbH. "The path to a sustainably profitable future for Ford in Europe requires comprehensive measures and changes in the way we develop, build, and sell Ford vehicles. This has implications for the skills and organizational structure we will need in the future," Sander continued.

3,800 Job Cuts in Three Years

Europe-wide, the automaker plans to cut around 3,800 jobs over the next three years. Of these, about 2,300 positions will be in Germany, with 1,700 jobs in product development and 600 in general administration. Together with employee representatives, management has agreed on a socially responsible job reduction with mutually voluntary severance and early retirement programs.

Slimming Down Development and Administration

In European product development, Ford plans to cut a total of 2,800 positions. These layoffs are driven by the transition to fully electric powertrains and reduced vehicle complexity. However, according to Sander, Ford will continue to focus on vehicle design and development as well as the development of connected services in Europe with around 3,400 positions.

Similarly, the entire European administrative sector will also see positions fall victim to cost-cutting measures. In addition to a reduction of about 1,000 positions, costs are especially expected to be saved in the areas of marketing and sales.

“These are difficult decisions that have not been made lightly, and we are fully aware of the uncertainty they bring for our workforce. In Germany, we have reached a good and sustainable agreement with our social partners, which excludes compulsory redundancies in Cologne and Aachen until the end of 2032. This is a good basis for building a successful future for our business in Europe together," emphasized Rainer Ludwig, Managing Director of Human Resources and Social Affairs at Ford-Werke.