Ford to cut 14% of its European workforce

Ford Motor Co. will cut about 14 percent of its workforce in Europe, Reuters reported, citing a lack of government support for the switch to electric vehicles and increased competition from Chinese rivals.

Ford's announcement is the latest by a carmaker to announce layoffs, after Volkswagen, Nissan, Stellantis and General Motors announced cost cuts amid growing competition from China in Europe and buyers' reluctance to buy more expensive electric vehicles.

Ford said on Tuesday it would cut 4,000 jobs, mainly in Germany and Britain. Globally, the cuts represent about 2.3 percent of Ford's 174,000-strong workforce. The measures will be a particular blow to Germany, Europe's largest economy and largest carmaker, as Volkswagen threatens to close factories, cut wages and make thousands of layoffs.

Ford's job cuts in Europe will run until the end of 2027, pending talks with unions. The company said 2,900 of the job cuts would be in Germany and 800 in Britain. Ford also said it would reduce production of its Explorer and Capri EV models at its plant in Cologne, Germany.

Speaking to reporters, Ford Europe vice president Peter Godsell said: "Ford is facing weaker demand for electric vehicles than we previously expected and we continue to have challenges with our operating costs, so we need to take decisive action to restructure our business. We hope that the job cuts will address the company's problems, but we certainly cannot rule out further measures if market conditions worsen."

In the first nine months of this year, Ford's sales in Europe fell 17.9%, outpacing the industry's 6.1% decline.

Last year, Ford announced tough restructuring measures in Europe, including the layoff of 3,800 employees and the closure of its Saarlouis, Germany, plant in 2025.