Berlin: Ford announced plans to cut around 14% of its European workforce, equating to 4,000 jobs, citing weak electric vehicle (EV) demand, limited government support, and competition from subsidized Chinese automakers, media reports said.

The layoffs, set to conclude by the end of 2027, will primarily affect Germany (2,900 jobs) and Britain (800 jobs), according to a Reuters report.

According to the report, the automaker attributed the move to higher-than-expected operating costs and disappointing EV sales, with Ford Europe vice president Peter Godsell noting, “Weaker demand for electric vehicles than we had previously forecast” necessitated “decisive action to restructure our business.”

Ford’s European sales fell 17.9% through September, significantly outpacing the industry-wide decline of 6.1%.

The job cuts include reduced production of Explorer and Capri EV models at Ford’s Cologne plant, where 24% of the workforce will be affected.

German unions have opposed the plans, demanding alternative solutions and warning of potential confrontations. IG Metall’s Knut Giesler criticized the lack of discussions on the company’s future.

Ford also called on the German government to introduce more EV incentives and expand charging infrastructure, emphasizing the need for clear policies to support the transition to e-mobility.

EV sales in Germany dropped 28.6% in the first nine months of 2024 following the removal of subsidies.

This announcement is part of Ford’s ongoing European restructuring, which included 3,800 job cuts earlier this year and plans to shutter its Saarlouis plant in 2025.

It comes amid broader challenges in the EV sector, including high production costs and weak consumer demand.