Ford Motor Company (F, Financial) has announced plans to reduce its workforce by 4,000 employees in Europe and the UK by the end of 2027. This decision comes as the company faces economic headwinds, increased competition, and lower-than-expected electric vehicle (EV) sales.
The majority of the job cuts will occur in Germany, with 2,900 positions affected. Additionally, 800 jobs will be cut in the UK, and 300 in other EU countries. Ford employs 28,000 people in Europe and 174,000 globally.
Ford stated that the automotive industry is undergoing significant upheaval as it transitions to electrification. This shift is particularly pronounced in Europe, where automakers face fierce competition and economic challenges, alongside the need to balance environmental regulations with consumer demand for EVs.
European automakers are required to sell a sufficient number of EVs to meet the stricter carbon dioxide emissions limits set for 2025 and the EU's 2035 zero-emission target, which will phase out most internal combustion engine vehicles.
However, inflation-driven consumer spending cuts and the removal of government subsidies for EVs in Germany, a key automotive market, have hindered EV sales growth. In the first nine months of this year, the overall automotive market contracted, and EV sales fell by 5.8%.
