Ford announced on Wednesday that it will cut approximately 14% of its European workforce, following significant losses in recent years due to weak demand for electric vehicles (EVs), lack of government support for EV transition, and increased competition.
This is the latest announcement from an automaker regarding layoffs, following cost-cutting measures by Volkswagen, Nissan, Stellantis, and General Motors, in response to challenges posed by competition from China in Europe and consumer reluctance to purchase more expensive electric vehicles, as reported by Reuters.
On Wednesday, Ford stated that it will let go of 4,000 employees, mainly in Germany and the United Kingdom. Globally, the job cuts represent about 2.3% of Ford's workforce, totaling 174,000 employees.
The measures will particularly impact Germany, the largest European economy and the biggest auto producer, as Volkswagen threatens to close some plants, reduce salaries, and implement layoffs.
The layoffs in Europe will be completed by the end of 2027, Ford specified.
In the first nine months of this year, Ford's sales in Europe dropped by 17.9%, surpassing the industry decline of 6.1%.
Last year, Ford announced stringent restructuring measures in Europe, including laying off 3,800 employees and shutting down its Saarlouis plant in Germany by 2025.