Ford to reportedly cut 3,200 jobs in Europe

Ford Motor Co is reportedly the latest large corporation laying off thousands, with plans to cut 3,200 jobs across Europe, mainly in Germany, reports said, quoting Germany's IG Metall union.

The U.S. auto manufacturer also plans to move some product development work to the US. The planned workforce reduction is part of the company's efforts to cut costs to face ongoing macroeconomic conditions amid recession fears.

Rising electric vehicle (EV) battery material costs are said to be a major issue for Ford, which has set a target of attaining half of global sales from EVs by 2030.

The company recently said it needs to be more competitive as it transitions to EVs and that shifting to electric vehicle production requires structural changes.

Reuters reported that Ford plans to cut 2,500 jobs in product development and a further 700 in administrative roles, mainly in German locations.

Ford told workers at its Cologne plant, which employs around 14,000 people, of its plans at works council meetings. An additional 3,800 working at a development centre in a northern Cologne neighbourhood.

Ford is in discussions with the German works councils about its decision. Meanwhile, the union said it is planning to take action if Ford goes ahead with the proposed cuts.

IG Metall, one of Germany's largest unions, reportedly said, "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."