Automaker Ford on Tuesday mentioned it intends to chop 3,800 jobs in Europe over the subsequent three years to undertake a “leaner” construction because it focuses on electrical car manufacturing.

The corporate plans to slash 2,300 jobs in manufacturing improvement and administration in Germany, 1,300 within the U.Okay. and 200 posts elsewhere in Europe. It mentioned it would retain roughly 3,400 engineering roles in Europe, targeted on car design and improvement, alongside the creation of linked providers.

The overhaul is not going to have an effect on Ford’s purpose to supply an all-electric fleet by 2035. The corporate expects manufacturing of its first European-built electrical passenger car to start out later this yr.

“These are troublesome choices, not taken flippantly. We acknowledge the uncertainty it creates for our crew, and I guarantee them we will likely be providing them our full help within the months forward,” mentioned Martin Sander, basic supervisor of Ford Mannequin e in Europe.

“Paving the best way to a sustainably worthwhile future for Ford in Europe requires broad-based actions and modifications in the best way we develop, construct, and promote Ford automobiles. This can influence the organizational construction, expertise, and expertise we’ll want sooner or later.”

The Ford restructure comes as the corporate picks itself up from the ashes of brutal fourth-quarter outcomes that had been down $11 billion on the identical interval of final yr and got here in $1.1 billion wanting the automaker’s personal steering. Ford Chief Monetary Officer John Lawler attributed the corporate’s depressed earnings largely to execution and provide chain administration hurdles, because the car producer fell wanting anticipated gross sales by 100,000 items final yr.

“We now have to vary our value profile,” Farley informed CNBC on Feb. 3. “We all know what we’ve got to go after. I might love to offer you all of the metrics and all the precise gaps we see. However you already know, whether or not it is absenteeism, the variety of sequencing facilities, the variety of wiring harnesses we’ve got, we all know what it’s.”

On the time, Farley signaled that the answer to Ford’s drive towards effectivity was not merely to chop jobs:

“There are issues we might do within the brief time period, however I do not need to simply make the output the cuts with out redesigning the work. This must be sustainable and that is how we’re excited about it these days,” he mentioned.

Automakers have been locked in a good race to seize market share as they wheel in new and competitively priced electrical automobiles.

Throughout his fourth-quarter outcomes presentation, Farley famous that Ford’s EV enterprise was not but worthwhile — a yr after separating it from the corporate’s inner combustion engine enterprise and upping its anticipated funding in EVs and different applied sciences to $50 billion by 2026.

The corporate on Jan. 30 introduced plans to lift output and lower costs of its electrical Mustang Mach-E crossover, inside weeks of rival Tesla trimming costs for U.S.-sold fashions throughout the board and for its Mannequin 3 and the Mannequin Y inside Europe.