Famous car brand to retrench almost 500 employees in SA
Many South Africans could soon be saying goodbye to their jobs.
South Africa's unemployment rate remains a major issue for the country, with many people struggling daily to find work and make ends meet.
According to the latest Quarterly Labour Force Survey (QLFS) from Stats SA, the unemployment rate has jumped to 33.2% in Q2 of 2025.
This is an increase from the 32.9% recorded in the first quarter of 2025.
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With South Africa's already turbulent workforce, any news of retrenchments or job losses is sure to set off alarm bells.
According to The Citizen, one of the world’s biggest car brands, Ford, is set to retrench at least 470 employees at its Pretoria and Eastern Cape plants.
The jobs affected include 391 operator positions in Silverton, Pretoria, 73 positions at Struandale in Gqeberha, as well as 10 administrative positions.
Many companies in the automotive industry are doing all they can to mitigate the impact of the 25% US tariffs on vehicle imports, which have been a major reason for job losses.
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Ford, however, is not among these, as there are not a lot of exports to the US from its local operations.
So what is the reason?
According to BusinessTech, the automaker's decision to cut jobs is part of a "realignment" of its production capacity to match current and expected market demands.
The group said it is making "necessary adjustments" as a way to optimise production.
"We regret that these essential plant adjustments will result in a reduction of positions across both facilities," it said.
"We understand the impact this has on our valued employees, and we are committed to supporting those affected. As part of this process, we will be offering voluntary separation options."
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Trade union Solidarity reported on Ford's notice, expressing concern that other car manufacturers might soon follow suit.
"When an automotive giant like Ford takes such drastic steps, it is a warning to the entire industry. We fear that further retrenchments in this industry may be inevitable if conditions do not improve quickly," said Willie Venter, Solidarity deputy general secretary.
"We will explore every possible alternative to limit job losses, and we will ensure that Ford not only fulfils its duty, but that employees are treated fairly."
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