Ford has announced plans to cut 4,000 more jobs across Europe, dealing another blow to the continent’s struggling car industry. Most of the cuts will affect Germany and Britain, with 2,900 positions being eliminated in Germany, 800 in the UK, and 300 elsewhere in western Europe by the end of 2027.
In a statement, Ford attributed the decision to mounting financial losses driven by the transition to electric vehicles and growing competition. “Taking these tough but necessary steps is crucial to securing Ford’s competitiveness in Europe,” said Dave Johnston, Ford’s European Vice-President.
The company also revealed changes in its production strategy, including adjustments to the Explorer and Capri models. This will result in reduced work hours at Ford’s Cologne plant in early 2025.
Challenges Facing Europe’s Auto Sector
Europe’s car industry is grappling with high production costs, challenges in transitioning to electric vehicles, and stiff competition, particularly from China. German automaker Volkswagen has also felt the strain, with CEO Oliver Blume recently calling the situation “demanding and serious.” Volkswagen is even considering closing some factories in Germany due to financial pressures.
Previous Cuts and Strategic Shifts
This isn’t the first time Ford has announced job cuts in Europe. In early 2023, the company revealed plans to slash 3,800 jobs, including 2,300 in Germany and 1,300 in the UK. At that time, Ford stated it would focus on fewer models for the European market, prioritize the van segment, and accelerate its shift to electric vehicles.
With 28,000 employees across Europe, including 15,000 in Germany, Ford’s restructuring efforts aim to navigate the challenges of a rapidly changing automotive landscape while ensuring its long-term sustainability.
