Ford has announced plans to eliminate 4,000 jobs in Europe, citing financial losses and increasing competition as the auto industry shifts toward electric vehicles. The cuts, which will primarily affect Germany and the United Kingdom, are set to be completed by 2027.
In a statement, the company described the move as a necessary step to remain competitive. “The company has incurred significant losses in recent years,” Ford said. “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”
The layoffs will include 2,900 positions in Germany, 800 in the UK, and 300 across other parts of western Europe. Ford’s European Vice President, Dave Johnston, emphasized the importance of the restructuring. “This is a challenging but vital decision to position the company for long-term success in an increasingly competitive market,” he said.
The company also announced adjustments to production schedules for its Explorer and Capri models. These changes will lead to reduced hours at Ford’s Cologne plant in the first quarter of 2025.
Broader Industry Challenges
Europe’s car industry continues to struggle with rising manufacturing costs and increased competition, particularly from Chinese electric vehicle manufacturers. The shift to electrification has created new hurdles for traditional automakers, with many facing declining profitability.
Volkswagen, one of Ford’s key competitors, recently warned of potential factory closures in Germany. “The European automotive industry is in a very demanding and serious situation,” Volkswagen CEO Oliver Blume said in September.
Ford’s Previous Cuts
This announcement follows Ford’s February 2023 decision to cut 3,800 jobs across Europe, as the company streamlined its operations and shifted focus to its profitable van segment and electric vehicle production.
With around 28,000 employees in Europe, including 15,000 in Germany, the automaker is taking aggressive measures to adapt to the rapidly evolving automotive market. “We understand the impact this decision has on our employees, and we are committed to providing support during this transition,” Ford added in its statement.
The restructuring comes as Ford positions itself to meet the challenges of the future while navigating an increasingly competitive global market.
