Ford implementing cost-cutting measures for employee benefits

Ford vehicle sales are on the rise, albeit slowly. Financial savings are anticipated, potentially leading to job reductions. Employees are now being consulted about their willingness to accept these changes.

, and Administrator

2025 September 14 . 2:11 AM

2 min read

Ford's workforce appears to be streamlining for cost reductions

Ford implementing cost-cutting measures for employee benefits

The long-standing conflict between management and workers at the Cologne Ford plant appears to be nearing its end, following a series of negotiations and a historic strike last month.

In July, IG Metall and management reached a compromise on cost-cutting measures, severance packages, and financial safeguards. This agreement also includes a financial assurance from Ford's US parent company, providing additional security for the workforce.

The result of the ballot among IG Metall members at the Cologne Ford plant is expected to be announced this Friday afternoon. The union is holding a vote this week on more than 10,000 members of the Ford plant.

The heated conflict led to the first strike in the history of the Cologne Ford plant, lasting a day and halting production completely. However, IG Metall spokesman at the Ford plant, David Lüdtke, expects the employees to accept the negotiation result and vote for the end of the labor disputes.

The counting of the votes began on Friday morning. It's worth noting that to reject the negotiation result and continue the labor dispute, at least three-quarters of the IG Metall members at the Cologne Ford plant would have to agree, which is considered unlikely.

One significant outcome of the labor dispute is that by the end of 2027, approximately 2,900 jobs are set to be cut at the Cologne Ford plant, representing a quarter of the current 11,500 positions. Those leaving the plant will receive high severance payments.

Ford's sales of new electric vehicles from Cologne have fallen short of expectations, but the company's market share in Germany has risen from around 3 to 4.5 percent since the beginning of the year.

As the labor dispute at the Cologne Ford plant seems to be winding down, both parties are hopeful for a peaceful resolution and a return to normal production operations.