Ford Motor Co. said Wednesday it plans to cut 4,000 jobs in Europe and the United Kingdom by the end of 2027, citing economic challenges and slower-than-expected electric vehicle sales, according to a statement from the company.
The automaker said most of the job reductions will occur in Germany, with 2,900 positions to be eliminated there, 800 in Britain, and 300 in other European Union countries. The cuts represent a significant portion of Ford’s European workforce, which currently stands at 28,000 employees.
Dave Johnston, Ford’s European vice president for transformation and partnerships, said the latest cuts are vital for the company’s growth in the European market.
“It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe,” he said in the statement.
The decision was announced as Ford faces what it describes as “unprecedented competitive, regulatory, and economic headwinds” in the European market. The company pointed to a misalignment between CO2 regulations and consumer demand for electric vehicles as a key challenge.
Ford’s sales in Europe have been declining, with a 15.3 percent drop in the first nine months of 2024 compared with the same period last year, according to the European Automobile Manufacturers’ Association. The company’s market share in Europe has also shrunk, from 3.5 percent to 3.0 percent.
Ford is not alone in facing such challenges, as Volkswagen is considering closing up to three of its German plants, its chief employee representative told the Associated Press.
In response to these industry-wide challenges, governments and industry stakeholders are being called to action to resolve the issue. John Lawler, Ford’s vice chairman and chief financial officer, sent a letter to the German government urging for improvements in market conditions and support for the industry’s transition.
“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets,” Lawler said in the recent announcement.
Despite the layoffs, the automaker said it remains committed to growing its European market and tackling its climate goals, highlighting a recent $2 billion investment to transform its Cologne plant in Germany into an electric vehicle center.
Ford’s vision for its European business focuses on three key areas: maintaining its leadership in the commercial vehicle sector; offering a range of internal combustion engine, hybrid, and fully electric passenger vehicles; and modernizing its industrial system to improve efficiency and competitiveness, the company said.
The company also announced plans to reduce working hours at its Cologne plant, where it produces the Capri and Explorer electric vehicles, due to weak economic conditions and lower-than-expected demand for electric cars.
