Ford Motor Co. says it will reduce its workforce by 4,000 in Europe and the U.K. by the end of 2027, citing headwinds from the economy and pressure from increased competition and weaker than expected sales of electric cars.
Ford said Wednesday most of the job cuts would come in Germany and would be carried out in consultation with employee representatives.
Of the total, 2,900 jobs would be lost in Germany, 800 in Britain and 300 in other European Union countries. Ford has 28,000 employees in Europe, and 174,000 worldwide.
“The global auto industry continues to be in a period of significant disruption as it shifts to electrified mobility,” the company said in a statement. “The transformation is particularly intense in Europe where automakers face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles,” the statement said.
The company said that it would also reduce working time for workers at its Cologne, Germany, plant where it makes the Capri and Explorer electric vehicles.
Ford sales fell 15.3% in the first nine months of the year compared to the same period last year, according to the European Automobile Manufacturers’ Association. The company’s market share shrank to 3% from 3.5% The Dearborn, Michigan, headquartered automaker saw companywide net profit fall by 26% to $892 million in the third quarter as it took $1 billion in accounting charges to write down assets for a canceled three-row electric SUV. The company cited higher warranty and other costs.
