Ford to cut 4,000 jobs in Europe by end-2027 due to huge losses, disruptive EV shift, rising competition

by · Paul Tan's Automotive News

It’s dire times for Ford in Europe as the automaker has announced it will reduce its European workforce by 4,000 positions by the end of 2027. According to the company, the planned job cuts will primarily impact operations in Germany and the United Kingdom, with minimal reductions in other markets within the Old Continent.

The move is part of the Ford’s restructuring plans to “create a more cost-competitive structure and ensure the long-term sustainability and growth of its business in Europe.” It noted that its passenger vehicle business in Europe has incurred significant losses in recent years, and that the industry shift to electrified vehicles and new competition has been highly disruptive.

Additionally, the weak economic climate and lower-than-expected demand for electric cars were also cited as reasons for the move. Ford says it will adjust the production programme for the Explorer and Capri – both EVs are built on Volkswagen’s MEB platform – which will result in additional short-time working days at its Cologne plant in the first quarter of 2025.

“Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come. It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe,” said Dave Johnston, Ford’s European vice president for transformation and partnerships.

In recent years, Ford’s focus on crossovers and electric vehicles (EVs) has seen it kill off well-known nameplates in Europe, including the Mondeo and Fiesta. The Focus is also on its way out when production ends in 2025, the company announced in 2022. This strategy doesn’t appear to be paying off based on European Automobile Manufacturers Association (ACEA) data, which shows Ford selling 15.3% less cars from January to September this year compared to the same period in 2023.

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