Ford to Slash 4,000 Jobs in Europe Amid EV Market Challenges
Ford Motor Company has announced plans to cut nearly 4,000 jobs across Europe by 2027, a move representing 14% of its regional workforce. The decision comes as the automaker grapples with weakening demand for electric vehicles (EVs), rising competition from Chinese manufacturers, and economic uncertainties in the automotive sector.
The U.S.-based carmaker disclosed on Wednesday that the layoffs, which are subject to consultation with labour unions, will primarily affect operations in Germany and the United Kingdom.
“The global auto industry remains in a disruptive phase, particularly in Europe, where manufacturers face intense competitive, regulatory, and economic pressures,” the company stated.
Dave Johnston, Ford’s European Vice President for Transformation and Partnerships, highlighted the necessity of the cuts, saying, “Decisive action is essential to secure Ford’s long-term competitiveness in Europe.”
Declining EV Demand and Increased Pressure
The global auto industry is undergoing significant changes as Western automakers face stiff competition from Chinese EV producers, who are rapidly gaining market share. Ford, like its peers, has experienced reduced sales and has been forced to lower EV prices, intensifying financial losses in the segment.
Ford’s passenger vehicle operations in Europe have been unprofitable in recent years, prompting the company to reduce EV production targets and re-evaluate its strategy. On Wednesday, Ford announced adjustments to its production plans for the Explorer and Capri EV models, which will result in shorter working hours for employees due to weaker-than-anticipated demand.
Calls for Policy Support
In a letter to the German government, Ford’s Chief Financial Officer John Lawler urged policymakers to take action to improve conditions for automakers in Europe.
“We need a clear policy agenda to advance e-mobility, including public investments in charging infrastructure, effective incentives for consumers, cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets,” Lawler wrote.
Industry-Wide Struggles
Ford’s announcement follows similar moves by other automakers facing industry-wide turbulence. Volkswagen recently announced plans to cut wages by 10% to avoid factory closures and layoffs, as it battles a sluggish car market in Europe and declining market share in China.
The European auto industry continues to face headwinds, with many companies scaling back operations to adapt to evolving market dynamics and intensifying global competition. Ford’s restructuring aims to position the company for long-term sustainability, albeit at the cost of significant workforce reductions.
