Ford Motor Company has announced plans to reduce its workforce by 4,000 employees across Europe and the UK by the end of 2027. This decision comes in response to economic challenges, increased competition, and slower-than-expected sales of electric vehicles (EVs).
The majority of the job cuts will impact Germany, where 2,900 positions are set to be eliminated. In the UK, 800 jobs will be cut over the course of the next three years, while another 300 positions will be reduced across other European Union countries.
Currently, Ford employs 28,000 people in Europe, including 5,300 in the UK, and has a total global workforce of 174,000. The company cited the need for operational efficiency as it navigates economic pressures and adapts to changing market demands. A sharp decline in sales has compounded the situation, with Ford’s sales in Europe dropping by 15.3% in the first nine months of 2024 compared to the same period last year. Additionally, the company’s market share fell from 3.5% to 3%.
In the third quarter of 2024, Ford reported a 26% drop in net profit, amounting to $892 million. The shift toward EV production, driven by stricter emissions regulations in Europe, has added to the challenges faced by the company.
Ford plans to manage the layoffs in consultation with employee representatives, with a priority on voluntary redundancies. In the UK, efforts will focus on minimizing the impact on employees and ensuring a smooth transition for those affected.
The challenges faced by Ford reflect broader difficulties within the European auto industry. For instance, Volkswagen is also considering closing three German plants due to similar pressures.
