Ford to cut 4,000 European jobs amid electric vehicle slump
Ford has officially announced plans for a major restructuring in the European market. The brand is planning further significant cuts due to decreased demand for electric vehicles and growing competition from China.
By 2027, Ford will lay off 4,000 employees, reducing its European workforce by as much as 14%. Germany will be most affected, with as many as 2,900 people losing their jobs. In the United Kingdom, the reduction will comprise 800 positions, and in other markets, Ford will say goodbye to 300 people.
With these cuts, Ford aims to "create a more competitive cost structure and ensure long-term stability in Europe," according to the brand's official statement published on November 20 at 2:00 PM.
One of the main reasons for the decision is the noticeable decrease in demand for electric vehicles. From January to September 2024, the Germans purchased 28% fewer electric cars than in the same period last year. This is largely due to the withdrawal of government subsidies. The drop for all of Europe was 2.5%.
The weak market situation is impacting Ford's factory in Cologne, which produces the electric Explorer and Capri. Although both models are new to the market, they are not attracting customer interest. Demand is so weak that the plant has introduced shorter working hours and will operate in this mode for at least the next few months.
In a conversation with journalists, Ford Europe Vice President Peter Godsell expressed hope that the job cuts will help stabilize the company's situation but noted that "he cannot rule out additional measures."
