Ford Motor has announced plans to reduce its workforce by 4,000 employees in Europe and the UK by the end of 2027. The decision comes amid economic challenges, increased competition, and slower-than-expected sales of electric vehicles (EVs).
The bulk of the job cuts will affect Germany, with 2,900 positions set to be eliminated. In the UK, 800 jobs will be cut over the next three years, while another 300 positions will be reduced across other European Union countries.
Ford currently employs 28,000 people in Europe, including 5,300 in the UK, and 1,74,000 globally.
Ford attributed the layoffs to the need for operational efficiency as the company navigates economic pressures and adapts to evolving market demands. A sharp decline in sales has further compounded the issue. Ford’s sales in Europe dropped by 15.3 per cent in the first nine months of 2024 compared to the same period last year, while the company’s market share fell from 3.5 to 3 per cent.
In the third quarter of 2024, Ford reported a 26 per cent drop in company wide net profit, amounting to $892 million. The shift toward EV production, driven by stricter emissions regulations in Europe, has added to the challenges.
Ford plans to handle the layoffs in consultation with employee representatives, prioritising voluntary redundancies. In the UK, efforts are being made to minimise the impact on employees and to ensure a smooth transition for those affected.
The challenges faced by Ford reflect broader difficulties within the European auto industry. Volkswagen, another major automaker, is considering closing three German plants due to similar pressures.
