Ford Motor Co. (F) is cutting 3,800 jobs in Europe over the next three years as it accelerates its transition to electric vehicles.
The Detroit automaker said it plans to eliminate 2,300 jobs in production development in Germany, 1,300 employees in the United Kingdom, and 200 positions elsewhere in Europe.
Ford said it will retain about 3,400 engineering roles in Europe, focused on vehicle design and development.
The headcount reduction comes as Ford aims to offer an all-electric vehicle fleet by 2035. The company expects production of its first European-built electric passenger car to start later this year.
Ford recently reported difficult fourth-quarter results that came in $1.1 billion lower than Wall Street forecasts. The company’s Q4 sales were 100,000 units lower than a year earlier.
Automakers are currently in a difficult race to capture market share as they introduce competitively priced electric vehicles.
Ford’s electric vehicle business is not yet profitable, though the company is investing $50 billion U.S. in electric vehicles and their related technologies through 2026.
Ford’s stock has declined 25% over the past year to trade at $13.09 U.S. per share.
