Ford Motor Co (NYSE:F) shares are ticking lower on Thursday.

The auto company announced further job cuts at its Valencia, Spain, assembly plant, totaling up to 1,600 positions, following a previous reduction of 1,100 staff last year.

The decision reflects ongoing adjustments in Ford's European operations, reported Reuters.

The automaker, which currently employs about 4,700 workers at the Valencia facility, communicated to unions that 600 jobs would be cut permanently.

However, discussions are ongoing about potentially rehiring 1,000 workers in the future, as Ford plans to ramp up production with a new vehicle launch slated for 2027.

Negotiations may lead to a temporary arrangement for the 1,000 workers affected, bridging the period until the new vehicle's production begins.

Also Read: Ford plans Level 3 autonomous driving By 2026

The Valencia plant is set to start manufacturing a new hybrid passenger car aimed at the European and other markets starting in 2027, with an expected annual output of 300,000 units.

Ford's Valencia plant, located in the Almussafes district, currently produces the Kuga compact sports utility vehicle, having phased out other models in recent years.

The plant's transition to new model production represents a significant strategic shift for Ford in Europe, focusing on hybrid technology to align with evolving market demands and regulatory standards.

These job cuts mark the second major workforce reduction at the Valencia facility within two years.

Ford stock has lost more than 15% in the last 12 months. Investors can gain exposure to the stock via Schwab U.S. Dividend Equity ETF (NYSE:SCHD) and IShares MSCI USA Value Factor ETF (BATS:VLUE).

Price Action: F shares are trading lower by 1.57% at $11.89 at last check on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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