Ford to cut 4,000 European jobs by 2027
Ford Motor Company announced a significant workforce reduction in Europe, planning to eliminate 4,000 jobs by 2027, representing 14% of its European workforce. The cuts include 800 positions in the UK and 2,900 in Germany, though manufacturing facilities in Dagenham and Halewood will remain unaffected.
The decision comes amid challenging market conditions, including slower electric vehicle sales and increasing competition from Chinese manufacturers. Ford is also scaling back production of its new electric Explorer and Capri models at its recently upgraded Cologne facility, where the company invested $2 billion in electric vehicle manufacturing capabilities.
The restructuring will impact product development and administrative functions, including finance, human resources, and government affairs. Ford, which employs approximately 6,500 people in the UK, has not specified which British locations will be affected by the cuts.
The announcement follows a broader industry trend of automakers adjusting their strategies due to market pressures. Ford and other manufacturers recently met with UK government officials to discuss the Zero-Emission Vehicle (ZEV) mandate, seeking greater flexibility in meeting electric vehicle sales targets. Peter Godsell, a Ford Europe vice-president, described the current market conditions as "unstable" and the ZEV mandate as "challenging."
Ford's CFO, John Lawler, called for increased government support across Europe, emphasizing the need for public investment in charging infrastructure, consumer incentives, and more flexible CO2 compliance targets. The company cited a "misalignment between CO2 regulations and consumer demand for electrified vehicles" as a key challenge.
This restructuring follows Ford's previous reduction of 3,800 European jobs in early 2023, including 1,300 UK positions. The UK government has responded by requesting urgent details of Ford's plans to help mitigate the impact on affected workers and their families, while affirming its commitment to maintaining a partnership with the automaker.
