By Ebi Kesiena
Ford has announced plans to reduce its European workforce by 4,000 employees, primarily in Germany and the UK, citing ongoing financial losses, weaker-than-expected demand for electric vehicles (EVs), and competition from subsidized Chinese manufacturers.
In a statement on Wednesday, the layoffs, amounting to 14% of Ford’s European workforce, reflect mounting challenges in the automotive sector as high EV prices deter consumers and government support for the transition to e-mobility wanes.
Germany, Europe’s largest economy, will be hardest hit, with 2,900 job losses focused on Ford’s Cologne plant. Production of EV models like the Explorer and Capri will also be scaled back. The UK will see 800 job cuts, while the restructuring is expected to be completed by the end of 2027, pending union consultations.
Ford Europe Vice President, Peter Godsell attributed the layoffs to rising costs and slower EV adoption, stating, “Weaker demand for electric vehicles than we had previously forecast and challenges about our operating costs, require decisive action.”
The automaker has also called on the German government for stronger support, including investments in charging infrastructure and renewed EV subsidies. Ford CFO John Lawler criticized the lack of a clear e-mobility strategy, highlighting the impact of Germany’s termination of EV subsidies in December, which contributed to a 28.6% drop in EV sales in 2024.
Ford has been restructuring its European operations, cutting 3,800 jobs earlier in 2023 and planning to close its Saarlouis plant in 2025.
As the EU imposes tariffs on Chinese-made EVs over subsidy concerns, Ford’s German division Managing Director Marcus Wassenberg emphasized that high labor and energy costs in Germany further challenge competitiveness in a rapidly evolving industry.
