U.S. automaker Ford has announced that it plans to cut 4,000 jobs in Europe by the end of 2027, in a bid to create a more cost-competitive structure and ensure the long-term sustainability and growth of its business in Europe.
The planned job cuts will primarily impact operations in Germany, but also the United Kingdom (UK), with minimal reductions in other European markets, Ford said in a statement, adding that the company will consult with its European social partners on the pending layoff plan.
Ford also plans to further reduce working hours at its Cologne plant in the first quarter of 2025 “due to the weak economic situation and lower-than-expected demand for electric cars.”
Last week, Ford’s Cologne plant already announced reduction of EV production and shorter working hours due to sluggish EV demand in the European market, particularly in Germany. Around 2,000 workers are currently involved in reduced working hours.
“It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe,” said Dave Johnston, Ford’s European vice president for Transformation and Partnerships, in the statement.
According to the German Press Agency, Ford plans to cut 2,900 jobs in Germany, 800 in the UK and 300 in other European Union countries.
Benjamin Gruschka, head of Ford Germany’s works council, said that the employee side would “strongly oppose” the layoffs. He emphasized that an existing labor agreement prohibits dismissals for operation reasons until 2032.
Ford’s struggles reflect wider challenges within Germany’s automotive sector amid its transition to electrification. Over recent months, automakers and suppliers in the Europe’s largest economy have repeatedly announced large-scale redundancies, each affecting thousands of jobs.