Ford to Cut Thousands of Jobs in Europe

Ford Motor Company plans to cut thousands of jobs in its European operations over the next three years amid a sluggish economic climate and a difficult market for electric vehicles.

Germany Hit Hardest

The suburban Detroit automaker indicated that 2,900 of the total 4,000 layoffs would take place in Germany in partnership with labor officials, the Associated Press reported. Another 800 jobs would be eliminated in the U.K., and the remaining 300 jobs would be cut elsewhere in the European Union.

The overall layoffs would amount to about 14% of the company’s European workforce of approximately 28,000. Ford also intends to reduce hours at its flagship European plant in Cologne, Germany.

EV Landscape, Economic Headwinds, and Competition

The company cited weaker-than-expected EV sales, growing competition, and broader economic headwinds. The company’s EV sales, in particular, have been affected by inflation, competing electric models from Chinese automakers, and the end of government incentives for EV purchases in Germany.

Ford’s EV sales, the AP noted, were off by almost 6% through the first nine months of the year; its overall sales were reportedly off by more than 15% over the same span.

‘Difficult but Decision Action’

Dave Johnston, the vice president for transformation and partnership in the automaker’s European division, said that the company needed to take “difficult but decisive action” to ensure its competitiveness in Europe “generations to come.”

Ford, like other automakers in Europe, faces looming deadlines to dramatically cut its emissions — including the phase-out of most internal combustion engine vehicles by 2035.

Image Source: Shutterstock / Alexander Fedosov