U.S. automaker Ford Motor Co. plans to cut thousands of jobs in Europe, the Financial Times reported, citing Germany’s largest labor union.

IG Metall, which represents more than 2.2 million workers in the automotive, electrical and metallurgical industries, said that Ford intends to cut up to 3.2 thousand jobs in Germany and is preparing further layoffs across Europe.

Up to 65% of employees at Ford’s development centers in Europe and 20% of administrative positions could be cut, the union said.

The cuts will mainly affect Germany, but will also affect Belgium and the UK.

Ford has about 34,000 employees in Europe, half of whom are based in Germany.

Ford cites reduced production in Europe due to supply chain problems, price cuts by rival electric car maker Tesla Inc. and the energy crisis in the region as reasons for the planned job cuts, IG Metall reported.

Ford shares are getting cheaper in pre-market trading Tuesday. Their value has plunged 36% over the past 12 months.