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The job cuts represent around 2pc of the company’s total workforce.
Motoring giant Ford announced yesterday (20 November) that it will cut 4,000 jobs in Europe by the end of 2027.
The decision was made due to disappointing electric vehicle (EV) sales and new competition, which the company said has been “highly disruptive”.
“Of particular concern is the health of Ford’s passenger vehicle business in Europe, where the company has incurred significant losses in recent years,” it said in a statement.
The layoffs will reportedly see the loss of 2,900 jobs in Germany, 800 in the UK and 300 in other European Union countries.
As part of its restructure, Ford plans to reduce production of its Explorer and Capri EV models. This will result in additional short-time working days at its Cologne plant in the first quarter of 2025.
With approximately 174,000 workers worldwide, the job cuts represent around 2pc of its total workforce.
The company also called for better charging infrastructure and more attractive incentives in order to help drivers transition more easily to EVs.
In a letter to the German government, Ford’s vice-chair and chief financial officer John Lawler said there is a need for a joint commitment by all stakeholders to improve market conditions. “What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility,” he said.
The company joins other motoring brands who recently announced similar cost-cutting measures. In August 2024, General Motors announced plans to cut more than 1,000 jobs across its software and services teams globally to streamline operations in the business.
Ford’s recent decision to cut jobs is likely the result of acknowledging that the growth in global demand for EVs is slowing down.
According to a report from EY back in September, the percentage of people planning to buy an EV has risen from 55pc to 58pc since last year, based on more than 20,000 respondents from 28 countries.
However, it also showed that demand is levelling off, as this percentage jumped from 30pc to 55pc between 2020 and 2023.
In Ireland, the Society of the Irish Motor Industry (SIMI) found in April of this year that the sale of EVs in Ireland fell year-on-year for the fourth time in seven months.
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