Ford plans to cut almost 4,000 jobs in Europe over the next three years, about 14% of its workforce in the region, as the carmaker faces slowing demand for electric vehicles and rising competition from China.
The US company said Wednesday that the cuts would be completed by the end of 2027, pending consultations with labor unions, and would be concentrated in Germany and the United Kingdom.
“The global auto industry continues to be in a period of disruption, especially in Europe, where the industry faces unprecedented competitive, regulatory and economic headwinds,” Ford said in a statement.
Dave Johnston, Ford’s European vice-president for transformation and partnerships, added: “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”
Global automakers are under pressure from lackluster sales and intense competition from China, where EV makers are stealing market share from Western rivals, which have traditionally dominated the world’s largest passenger car market.
Ford’s passenger vehicle business has incurred significant losses in Europe in recent years. Like other carmakers, it has had to cut prices for its EVs, which have been badly loss-making, and it has scaled back EV production targets.
