Ford To Slash 14% Jobs In Europe

Ford has announced plans to reduce its European workforce by nearly 4,000 employees by the end of 2027, equating to about 14 per cent of its regional staff. The decision follows dwindling demand for electric vehicles (EVs) and intensifying competition from Chinese manufacturers.

The majority of the job cuts will affect workers in Germany and the UK, pending discussions with labor unions. In a statement, Ford emphasized that the automotive industry, especially in Europe, is facing unprecedented challenges due to competitive, regulatory, and economic pressures.

Dave Johnston, Ford's European VP for Transformation and Partnerships, highlighted the importance of the cuts, saying, “Taking tough but necessary steps is vital to secure Ford's future competitiveness in Europe.”

Ford's recent announcement sheds light on the wider difficulties confronting global carmakers. The company has reported considerable financial setbacks in its European passenger car division in recent years. In an effort to stay competitive, Ford and other automakers have had to reduce EV prices, affecting overall profitability.

In addition, Ford will make changes to its European production of the Explorer and Capri models, attributing the decision to a weak economic climate and lower-than-expected demand for EVs. This shift will lead to reduced working hours for affected staff.

John Lawler, Ford's Chief Financial Officer, recently appealed to the German government for more robust support for automakers. In his letter, Lawler urged public investments in EV infrastructure, incentives to encourage EV purchases, and regulatory adjustments to enhance cost efficiency.

"We are missing a strong and clear policy strategy in Europe and Germany to drive e-mobility," Lawler stated, emphasizing the need for greater government involvement.