Agencies
Ford announced on Wednesday plans to reduce its European workforce by approximately 14%, citing substantial losses in recent years that the carmaker attributed to weak demand for electric vehicles, insufficient government support for the EV transition, and intensifying competition in the sector.
The U.S. company is the latest automaker after Nissan, Stellantis and GM to cut costs as the industry struggles with growing competition from Chinese rivals in Europe, waning demand in China, and the challenges of shifting to EVs that remain too expensive for most consumers to buy.
Ford said the 4,000 job cuts would be primarily in Germany and the United Kingdom. Globally, layoffs represent around 2.3% of Ford’s workforce of 174,000.
The measures will be a big blow for Germany in particular, Europe’s largest economy and biggest carmaker, where Volkswagen is threatening to close factories, slash wages and cut thousands of jobs to improve its ability to
compete.
The country’s deepening political crisis is also adding uncertainty to companies grappling with growing trade tensions with China and the U.S. election victory of Donald Trump.
Ford said the European layoffs should take place by the end of 2027.
Europe’s automakers “face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles,” the company said in a statement.
