Ford has announced plans to cut 4,000 jobs across Europe by the end of 2027, attributing the decision to increased competition, weaker-than-expected electric vehicle (EV) sales, and ongoing economic challenges. The cuts, which represent around 14% of the company’s European workforce, will predominantly affect Germany, where 3,000 positions will be eliminated, along with 800 jobs in the UK.
The company emphasized that the job reductions are part of a broader strategy to improve its competitiveness in the face of a rapidly changing automotive landscape. Discussions with unions are still ongoing, and a final decision on the cuts will be made once talks are concluded.
In addition to job cuts, Ford also plans to reduce working hours for employees at its Cologne plant in Germany, where it manufactures electric vehicles such as the Capri and Explorer. Dave Johnston, Ford’s European vice president for transformation and partnerships, explained, “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”
The company cited the global auto industry’s ongoing transition to electrified mobility as a major factor in the restructuring. Ford’s statement acknowledged the particularly challenging environment in Europe, where automakers face stiff competition, economic headwinds, and a mismatch between stringent CO2 regulations and consumer demand for electric vehicles.
To adapt to these pressures, Ford has already cut back on vehicle production, focusing on models that generate the highest profit margins. The company is also adjusting to the new regulatory landscape, where European car manufacturers must sell more electric vehicles to meet stricter carbon dioxide emission limits by 2025. However, consumer interest in EVs has been slower than anticipated, partly due to rising costs and the withdrawal of government incentives for EV purchases in key markets like Germany.
Ford’s move follows similar actions by other automakers. General Motors recently announced 1,000 global job cuts, and Nissan revealed plans to eliminate 9,000 jobs and reduce its global production capacity by 20%. Volkswagen is also reportedly considering the closure of three plants in Germany, which could result in thousands of job losses.
The European Automobile Manufacturers’ Association has called for a faster review of the lower CO2 emission limits set for 2026, urging policymakers to reconsider the current pace of the transition to electric vehicles amid market challenges.
