Ford has announced plans to cut around 4,000 jobs in its European operations, citing weaker-than-expected demand for electric vehicles (EVs) as one of the key reasons for the decision. The U.S. automaker said the job cuts represent approximately 14% of its European workforce, or 2.3% of its global workforce.
Impact on Germany and the UK –
The majority of the job reductions will be in Germany, where Ford employs a significant portion of its European staff, and the UK. Specifically, Ford expects to cut 2,900 jobs in Germany and 800 in the UK. The job losses are part of a broader restructuring plan as Ford seeks to align its operations with market conditions.
These cuts come as Ford faces difficulties in adjusting to the growing shift toward EVs, compounded by a competitive environment dominated by subsidized Chinese manufacturers. At the same time, European customers have been slow to embrace EVs, contributing to weak sales that have pressured Ford’s profitability in the region.
The EV Challenge –
Ford Europe has been struggling with slower-than-expected demand for its electric models. The company cited challenges with high production costs and the ongoing transition to EVs as key factors influencing its decision. The automaker’s Cologne plant, which produces the Ford Explorer and Capri EV models, will reduce production as part of this restructuring effort.
Peter Godsell, Ford Europe’s Vice President, stated that “weaker demand for electric vehicles” and “challenges around operating costs” were critical factors in the company’s need for “decisive action to restructure” its operations. While Ford hopes these layoffs will address its issues, the company has acknowledged that further measures could be necessary if the market situation worsens.
The Broader Industry Struggles –
Ford’s move is part of a larger trend across the automotive industry, with companies like Nissan, Stellantis, and General Motors also making cuts due to slow EV adoption and rising competition from Chinese automakers offering more affordable electric models.
Ford has also been under pressure from political instability in Germany and growing trade tensions with China, which have added uncertainty to the company’s European operations. The German government has been urged to offer more support and incentives to help automakers adjust to the EV shift and remain competitive.
Ford’s Outlook –
The job cuts are expected to take place gradually through 2027, pending union discussions. Ford’s shares dipped by 1.8% following the announcement, reflecting investor concern over the impact of these changes. However, the automaker remains committed to its long-term EV goals, even as it navigates through this challenging phase in Europe’s shifting automotive landscape.
As Ford continues to adjust its European operations, the focus will likely remain on improving the viability of its EV lineup and responding to the increasing competition from both traditional automakers and emerging Chinese brands.
 as one of the key reasons for the decision. The U.S. automaker said the job cuts represent approximately 14% of its European workforce, or 2.3% of its global workforce.){kind=link}