What's going on?

Ford announced on Tuesday that it�s breaking up with 3,800 workers across Europe and the UK as it transitions to fully electric vehicles (EVs).

What does this mean?

Talk about timing: the US carmaker chose Valentine�s Day, of all days, to announce a so-called �voluntary� separation program for 2,300 German and 1,300 UK workers, with another 200 elsewhere also on the chopping block. This move will cut close to 10% of Ford�s employees across Europe, and comes as the carmaking giant accelerates toward a fully electric future. For now, Ford thinks EVs are simpler than old-fashioned gas guzzlers, and reckons they take less manpower to assemble. That�s all well and good for the auto colossus, but it�s cold comfort for the spurned workers.

Why should I care?

Zooming out: Europe�s stalling.
Ford announced 3,000 US layoffs back in August � but a quick napkin calculation shows that hit a far smaller percentage of the region�s 90,000-strong workforce than these European cuts do. Cynics might argue that�s because the US�s Inflation Reduction Act gives carmakers all kinds of generous handouts, making it easier to keep Americans on the books. But watch this space: Ford�s move will hit Germany�s vital auto industry where it hurts, which could get European lawmakers scribbling their own version of America�s policy before long.� �

The bigger picture: Electric dreams.
Ford�s accelerating its electric efforts so fast that it expects its entire car lineup to be gasoline-free by 2035. And it’s not the only one with ambitions like that: most major carmakers have similar plans, and some governments are even aiming to ban gas-fueled car sales by the mid-2030s. But EVs don�t come cheap, and someone�s got to foot the cost of the transition. So sure, America’s act helps, and EV production will get cheaper over time � but it�s likely that drivers and carmakers will ultimately have to swallow some of the cost.