Ford Motor Company has announced plans to cut 4,000 jobs across Europe and the United Kingdom by the end of 2027, citing challenges from the economic climate, heightened competition, and disappointing sales in the electric vehicle (EV) sector.

The majority of these layoffs are expected to take place in Germany and will be implemented in cooperation with employee representatives.

Additionally, Ford intends to reduce working hours for employees at its Cologne plant, which produces the Capri and Explorer electric vehicles.

Dave Johnston, who serves as Ford’s European vice president for transformation and partnerships, emphasized the necessity of making tough yet essential decisions to maintain Ford’s competitiveness in the European market.

The company elaborated that the global automotive sector is currently experiencing substantial upheaval as it transitions to electrified mobility.

This transformation is particularly pronounced in Europe, where automakers must navigate considerable competitive and economic challenges, in addition to addressing a disconnect between carbon dioxide regulations and consumer interest in electric cars.

To comply with new lowered carbon dioxide emission limits for fleet averages set to take effect in 2025, European car manufacturers must ensure sufficient electric vehicle sales.

However, EV purchases have been sluggish as consumers hesitate to spend amidst ongoing inflation, and the German car market has recently eliminated government incentives for electric vehicle buyers, further impacting sales.