Ford Motor Company announced plans to cut approximately 14% of its European workforce, impacting around 4,000 jobs primarily in Germany and the UK. The automaker cited declining electric vehicle demand, insufficient government support for the EV transition, and increased competition from Chinese rivals as the primary reasons for the job cuts.

The layoffs, totalling 4,000 jobs, will primarily affect Germany and the United Kingdom, accounting for 2.3% of Ford’s global workforce of 174,000. The cuts are expected to be completed by the end of 2027, pending union discussions.

Over 2,900 of the job reductions would be in Germany and 800 in the UK. Production of its Explorer and Capri EV models at the Cologne plant in Germany will also be scaled back.

Ford Europe Vice President Peter Godsell said the company is taking “decisive action” to address weaker-than-expected EV demand and operational challenges. “We certainly can’t rule out” further measures if market conditions worsen, Godsell added.

Ford’s decision mirrors moves by other automakers like Nissan, Stellantis, and General Motors to cut costs amid the high expenses of EV production and evolving market pressures.

Last week, GM announced 1,000 layoffs globally, while Nissan recently unveiled a restructuring plan involving 9,000 job cuts and a 20% reduction in global production capacity.

The job cuts are expected to significantly impact Germany, Europe’s largest economy, where automakers like Volkswagen are already facing pressure to reduce costs amid increasing competition and economic uncertainty.