Ford (F.US) is advancing its business reorganization in Europe. The German electric car factory has started voluntary layoffs.

Ford Motor Company (F.US) and German employee representatives announced on Friday that Ford Motor Company has agreed to implement a job protection plan at its Cologne factory covering over 10,000 employees, allowing for voluntary layoffs to address poor sales of electric vehicles. Ford is undergoing a difficult restructuring in Europe, with the layoffs at the Cologne factory and the upcoming closure of the Saarlouis plant dealing a new blow to Germany's reputation as a center for automobile manufacturing. In a statement, Ford said the framework is in effect until 2032 and includes the plan to lay off 2,900 people announced last November. Union chairman Benjamin Gruschka said in a statement, "The layoffs will mainly be done through voluntary departures. The severance packages are very generous, much higher than the industry norm." The German metalworkers' union (IG Metall) said that the production outlook for the Cologne factory remains uncertain, but welcomed the job protection plan. Ford is investing $2 billion to transform its Cologne factory into an electric vehicle production hub and is calling on the German government to provide more incentives and better charging infrastructure to help drive the transition to electric vehicles. IG Metall stated that the agreement for the Cologne factory includes the option for employees affected by the layoffs to exchange positions with employees in other departments who are willing to leave the company. The agreement still needs to be approved by a vote by the workers. As of the time of writing, Ford was down 0.7% in pre-market trading.