Ford Motor Co. has announced plans to reduce its workforce by 4,000 employees across Europe and the U.K. by 2027, citing economic challenges, increased competition, and weaker-than-expected sales of electric vehicles. The company revealed that the majority of the job cuts would take place in Germany, with consultations held with employee representatives. The breakdown of the cuts includes 2,900 jobs in Germany, 800 in the U.K., and 300 in other EU countries. Ford currently employs 28,000 people in Europe and 174,000 globally.
Ford acknowledged the ongoing disruption in the global auto industry as it transitions to electric mobility. The company noted that this shift is especially challenging in Europe, where automakers are dealing with strong competition, economic pressures, and a mismatch between CO2 regulations and consumer demand for electric vehicles.
In Europe, automakers are required to sell enough electric vehicles to meet stricter carbon dioxide emission limits for their fleets by 2025. Additionally, they must work toward a longer-term EU target of achieving zero emissions by 2035, which would effectively phase out most vehicles powered by internal combustion engines.
Electric vehicle (EV) sales have struggled as inflation concerns have led consumers to cut back on spending, and Germany, a major car market, eliminated government incentives for EV purchases. As a result, EV sales dropped by 5.8% during the first nine months of the year, amid an overall decline in the car market. Automakers are also facing growing competition from Chinese-made electric vehicles. Ford announced that it would reduce working hours for employees at its Cologne, Germany plant, where it manufactures the Capri and Explorer electric vehicles.
In addition, Ford’s sales in Europe fell by 15.3% in the first nine months of the year compared to the same period last year, according to the European Automobile Manufacturers’ Association. The company’s market share decreased from 3.5% to 3%. Ford’s overall net profit dropped by 26% to $892 million in the third quarter, partly due to $1 billion in accounting charges related to the cancellation of a three-row electric SUV and increased warranty and other costs.
Ford, a well-established brand in Europe, will celebrate its 100th anniversary of operating in Germany next year. The company’s main plant in Cologne began production in 1931, with the groundbreaking ceremony attended by Henry Ford and Konrad Adenauer, who would later become Germany’s chancellor.
Ford is not the only automaker facing challenges. Volkswagen has indicated it may close up to three of its German plants, according to the company’s chief employee representative. The European Automobile Manufacturers’ Association has called for a faster review of the lower CO2 emissions targets set for 2026.
In response to these challenges, Ford’s vice chairman and CFO, John Lawler, sent a letter to the German government. In it, he reaffirmed Ford’s commitment to climate goals but also urged the government to take action to improve market conditions and support the future success of the industry.
John Lawler expressed that Europe and Germany lack a clear and decisive policy plan to promote e-mobility. He emphasized the need for public investments in charging infrastructure, stronger incentives to help consumers transition to electric vehicles, improved cost competitiveness for manufacturers, and more flexibility in meeting CO2 compliance targets.