Ford Motor Co. has announced plans to reduce its workforce by 4,000 employees in Europe and the U.K. by the end of 2027. The decision comes as the company faces challenges from the economy, increased competition, and weaker-than-expected sales of electric cars.
Most of the job cuts are expected to occur in Germany and will be conducted in consultation with employee representatives. Additionally, Ford will be reducing working time for employees at its Cologne, Germany plant, where it manufactures the Capri and Explorer electric vehicles.
In a statement, Ford's European vice president for transformation and partnerships emphasized the importance of taking difficult but necessary actions to ensure the company's future competitiveness in Europe. The company highlighted that the global auto industry is undergoing significant disruption as it transitions towards electrified mobility.
The European auto market is facing challenges due to competitive and economic headwinds, as well as the need to align with new CO2 regulations and consumer demand for electric vehicles. Automakers in Europe are required to sell more electric vehicles to meet lower limits for fleet average carbon dioxide emissions by 2025.
However, electric vehicle sales have been sluggish, partly due to consumer caution amid inflation concerns and the removal of government purchase incentives for EVs in major markets like Germany.
