Ford on Tuesday announced it will eliminate 3,800 jobs over the next three years in Europe to restructure its business, creating a leaner, more competitive cost structure.

By 2025, Ford plans to resize its European engineering footprint, resulting in 2,800 fewer jobs. These changes are driven by the transition to fully electric powertrains and reduced vehicle complexity.

Additionally, a leaner cost structure will be created for Ford’s administrative, marketing, sales, and distribution functions in Europe, which includes the elimination of approximately 1,000 positions.

Ford said it will maintain an engineering organization of approximately 3,400 roles in Europe, focused on vehicle design and development, as well as the creation of connected services.

“Paving the way to a sustainably profitable future for Ford in Europe requires broad-based actions and changes in the way we develop, build, and sell Ford vehicles. This will impact the organizational structure, talent, and skills we will need in the future,” said Martin Sander, General Manager of Ford Model e in Europe.

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The actions align Ford’s product development organization and administrative functions in Europe, with a smaller, more focused, and increasingly electric product portfolio.

The automaker said it will now engage in consultation with its social partners across Europe with the intent to achieve the reductions through voluntary separation programs.

“These are difficult decisions, not taken lightly. We recognize the uncertainty it creates for our team, and I assure them we will be offering them our full support in the months ahead. We will engage in consultations with our social partners so we can move forward together on building a thriving future for our business in Europe,” Sander said.

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Ford is the top commercial vehicle brand in Europe, leading the industry for the past eight years.

Ford in Europe said it will continue to invest in the design and development of electric passenger vehicles, meeting consumer demand while at the same time targeting carbon neutrality across its European facilities, logistics, and key suppliers by 2035.

“We are committed to our customers in Europe. Ford is focused on delivering an exceptional customer ownership experience, with outstanding digital services and connectivity, ensuring their daily mobility needs are exceeded,” said Sander.

Globally Ford is investing over $50 billion in EVs through 2026.