No end to layoffs for German automakers? After Audi & Volkswagen, Ford announces job cuts

Ford Motor Co. plans to cut 4,000 jobs across Europe and the UK by the end of 2027, citing economic challenges, increased competition, and weaker-than-expected electric vehicle (EV) sales.

The announcement is yet another sign of the mounting difficulties facing automakers transitioning to electrified mobility.

The job reductions, announced Wednesday (November 20), will primarily affect Germany, with 2,900 positions slated for elimination.

An additional 800 jobs will be cut in the UK, alongside 300 in other EU countries. Ford employs 28,000 people in Europe and 174,000 globally.

The cuts will be implemented in consultation with employee representatives, the company said.

Why are Ford layoffs happening?

Automakers face “intense competitive and economic headwinds,” as well as a “misalignment between CO2 regulations and consumer demand for electrified vehicles,” Ford said in a statement.

Ford’s announcement comes amid broader industry challenges. The EU’s 2025 fleet emissions targets and the 2035 goal of net-zero carbon emissions are driving a shift to EVs.

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However, inflationary pressures and policy changes, such as Germany’s withdrawal of EV purchase subsidies, have dampened consumer demand.

Electric vehicle sales in Europe declined 5.8 per cent in the first nine months of the year, according to industry data, and the overall car market has contracted.

Ford has reported a 26 per cebt drop in net profit in the third quarter, with earnings of $892 million impacted by a $1 billion asset write-down related to a cancelled electric SUV project.

In addition to job cuts, Ford plans to reduce working hours at its Cologne plant, where it produces the electric Capri and Explorer models. The Cologne site, a cornerstone of Ford’s European operations since 1931, will celebrate its 100th anniversary in Germany next year.

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German auto sector in trouble

Ford is not alone in facing challenges.

Earlier this month, the Manager Magazine reported that Audi is looking to shrink its workforce in the medium term by cutting jobs outside of production.

Late last month, Volkswagen revealed plans to shut at least three factories in Germany, lay off tens of thousands of staff and shrink its remaining plants in Europe’s biggest economy.

Around the same time, Mercedes said it would step up cost cuts after earnings halved in the third quarter hit by tepid demand and fierce competition in China.

Cost cuts usually involve layoffs, although the company has not made such an announcement yet.

With inputs from agencies