Ford will cut 4,000 jobs across Europe, including 800 in the UK. This is due to a decline in sales of electric vehicles (EVs).
The carmaker is cutting its global headcount by 2.3% to create a “cost-competitive” structure. It employs 5,300 people in Britain, and 174,000 worldwide.
The redundancies are expected to take place by the end 2027.
The company claims that while the majority of affected roles will be in Germany and Britain there will only be “minimal reductions” in other European markets.
Ford has said that the decision to cut 14% of the European workforce is also a result from the poor support of the government in the transition towards EVs, and the competition from Chinese automakers who are subsidised.
The report also stated that the European industry is “facing unprecedented economic, regulatory and competitive headwinds”.
Ford has been present in Europe for over 100 years. “We are proud of the new product lineup for Europe and dedicated to building a successful business in Europe for future generations,” said Dave Johnston. Ford’s competitiveness in Europe will be determined by the ability to take tough but decisive actions.
In the first quarter 2025, the company plans to add short-time days of work at its Cologne plant for the new Explorer and Capri model.
Ford says that carmakers in Europe struggle with the switch to EVs due to “significant economic and competitive headwinds, while also dealing with a misalignment of CO2 regulations and consumers’ demand for electric vehicles”.
Recently, it called on all stakeholders in the industry to work together to improve market conditions and to ensure its future success.
This move is in line with other automakers who are also struggling to meet the challenges facing the industry.
Nissan announced earlier this month that it would be cutting 9,000 jobs worldwide, and its CEO took a pay cut of 50% to try and reduce its losses.
Volkswagen announced last month that it would shut down at least three German factories, reduce pay by 10%, and threaten tens thousands of jobs with redundancy.
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