Ford Announces 4,000 Job Cuts in Europe Amid Struggles with Electric Vehicle Transition

Ford plans to cut an additional 4,000 jobs in Europe as the industry-wide shift to electric vehicles loses momentum.

This reduction, affecting roughly 14% of Ford’s European workforce, will primarily target Germany and the UK, pending negotiations with unions and governments through late 2027.

Ford announced on Tuesday plans to scale back production of its Explorer and Capri electric vehicles at its Cologne, Germany, plant. In early 2021, the automaker had pledged to transition almost entirely to electric cars by the end of the decade and overhaul its European operations.

However, these plans have faced significant challenges, leading to last year’s announcement of 3,800 job cuts.

Ford’s Chief Financial Officer, John Lawler, stated that Europe and Germany lack a clear policy agenda to advance electric mobility. He emphasized the need for increased public investment in charging infrastructure, substantial EV incentives, and greater flexibility on carbon reduction targets, which the EU and UK plan to tighten next year.

The European Automobile Manufacturers Association reported that Ford’s market share in the European passenger car market declined from 4.1% to 3.3% in the first nine months of this year compared to last year.

In response, Ford CEO Jim Farley urges global executives to trim costs, citing the company’s competitive disadvantage.

The job cuts will be distributed to approximately 2,900 in Germany, 800 in the UK, and 300 in other regions.

A UK government spokesperson stated that the government has requested Ford share its full plan to mitigate the impact.

Peter Godsell, Ford’s Vice President of Human Resources in Europe, acknowledged, “Today is undoubtedly a challenging day for Ford in Europe, but we believe these steps are necessary given our current situation.”

Godsell also highlighted the intensified competition from Chinese manufacturers, stating that Ford is operating on an uneven playing field due to the subsidies being provided to their competitors.

This workforce reduction marks another setback for Germany’s struggling industrial sector.

Last week, Germany’s economic advisory council slashed its 2024 growth forecast, predicting a second consecutive year of contraction followed by a mere 0.4% growth in 2025.

Ford plans to implement reduced work schedules at its Cologne plant during the first quarter and will cease production at its Saarlouis plant in Germany next year.

Ford’s stock price dropped 3.5%. Since mid-July, when the company disclosed profit declines due to surging warranty costs related to recalls and quality issues, the stock has plummeted 27%.