Auto Layoffs: Ford Slashes Over 1,000 Jobs In Spain, Second Round Of European Cuts

The global auto industry took a hit Friday, when U.S. automaker Ford announced it would be slashing 1,100 jobs at its Spanish plant in Valencia.

Ford is citing a combination of discontinued products, decreased European revenue, and an industry-wide shift toward electric vehicle manufacturing as the main reasons behind the cuts, a spokesperson for the company told the Detroit Free Press.

The decision comes almost a month after Ford announced its first round of European cuts, which impacted operations mainly in Britain and Germany.

“These are difficult decisions, not taken lightly,” Martin Sander, general manager of Ford Model e in Europe, said at the time.

Recently, Ford also announced it would end production of the S-Max and Galaxy in April 2023, and while neither is sold in the U.S., the end of the line marks a shift in its European vision.

The Michigan-based automaker has detailed its strategy to offer an all-electric fleet in Europe by 2035 and says production of its first European-built electric car is expected to start later this year.

The Valencia plant is now expected to become a focal point in this strategy and will begin production on passenger vehicles based on the next-generation electric vehicle architecture, said the Ford spokesperson.

“Ford is taking another step in its European transformation by announcing plans to resize its workforce,” the company said. “Ford will work constructively with its union partners to reduce the impact of the separations on employees, their families, and the local community.”

The Valencia plant is Ford’s only manufacturing facility in Spain and currently employs around 5,400 people.

As the global automaking industry continues to grapple with an increasingly rapid shift away from combustion-powered vehicles, many companies are still playing catch up.

While many expect legacy automakers like Ford to be able to adapt, that has not insulated them from the economic perils that will likely follow the future.

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