Ford Motor Co. has announced a significant reduction in its European workforce, planning to cut around 14% of jobs, which translates to approximately 4,000 positions. This decision comes as the company faces substantial financial losses, weak demand for electric vehicles (EVs), and increasing competition from Chinese automakers. The layoffs will primarily affect Germany and the United Kingdom, two of Ford's key markets in Europe.

The U.S. automaker's move is part of a broader trend in the automotive industry, where companies like Nissan, Stellantis, and GM are also cutting costs to cope with the challenges posed by the shift to electric vehicles. Ford's decision highlights the difficulties European automakers face, including regulatory hurdles and a lack of government support for the EV transition.

Ford's sales in Europe have declined by 17.9% this year, significantly more than the industry average decline of 6.1%. The company has called on the German government to provide more incentives and improve charging infrastructure to facilitate the transition to electric vehicles. However, Germany ended EV subsidies last December, and EV sales have dropped by 28.6% in the first nine months of this year.

The layoffs are expected to be completed by the end of 2027, and they represent about 2.3% of Ford's global workforce of 174,000. This restructuring is part of Ford's ongoing efforts to adapt to the rapidly changing automotive landscape, which includes closing its Saarlouis plant in Germany next year.

The European Union has also imposed tariffs on Chinese-made EVs, accusing them of benefiting from unfair subsidies. This adds another layer of complexity to the competitive environment in which Ford and other automakers operate.

Ford's chief financial officer, John Lawler, emphasized the need for a clear policy agenda to advance e-mobility in Europe, including public investments in charging infrastructure and more flexible CO2 compliance targets. The company's restructuring efforts in Europe began earlier this year with the announcement of 3,800 job cuts in February.