Reduction in Employment: Up to 1000 Positions Eliminated at Ford's Cologne Site
In a recent development, Ford has announced plans to cut an additional 1,000 jobs at its Cologne plant in 2026. This decision comes as the company faces challenges in the European electric vehicle market.
The initial savings plan, which was announced last year, aimed to cut 2900 jobs by the end of 2027. However, with the expanding need for cost-cutting measures, the plan has been revised, potentially increasing the number of job cuts by another 1000.
The job cuts primarily affect production workers, as the plant shifts from a two-shift to a single-shift operation. This transition, which took place in January, was a significant change for the plant.
Ford justifies the new job cuts by citing weak demand for electric cars in Europe. Despite the challenges, the company has made strides in the electric vehicle market. The Cologne plant, for instance, underwent a costly conversion to electric vehicle production, amounting to almost two billion euros.
The plant has also seen success in the sales of electric vehicles. Between January and August, around 20,000 electric Ford passenger cars were registered in Germany. However, the exact number of electric cars produced in Cologne that were sold remains unknown.
The plant's market share in Germany has risen from 3 to 4.5 percent since the beginning of the year, a testament to the company's efforts in the electric vehicle market.
In an attempt to minimise the impact on employees, voluntary departures, severance payments, and partial retirement are being offered. This approach aims to avoid forced layoffs.
The IG Metall union, which represents Ford employees, has been informed about the additional job cuts and a conversation about the matter is scheduled to take place. The exact number of additional jobs to be cut is not yet known.
Employees leaving the plant will receive an attractive severance package or the option to retire. This severance package is considered relatively attractive for employees, offering a degree of financial security during this transition period.
The time pressure is high, with the number of jobs to be reduced accordingly as early as January 2026. The conversation about the additional job cuts will be held with the employee side to ensure a fair and transparent process.
Ford has also launched new models, such as the Explorer and Capri, with a base price of around 40,000 euros. The smaller Puma with battery-electric drive, however, faces a high entry-level price of 36,900 euros.
The savings plan initially ruled out dismissals for operational reasons, but if the job cuts fall significantly short, Ford could eventually issue dismissals for operational reasons. The company is also resorting to short-time work in its production, but now considers structural changes necessary and is permanently reducing its workforce.
As Ford navigates these challenging times, it continues to strive for growth and success in the electric vehicle market. The conversation about the additional job cuts is a critical step in this journey.
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