Automaker Ford announced planned layoffs in Europe. Between 2% and 3% of the workforce in some European countries are expected to lose their jobs. The reason is weak demand and large losses for companies.
As Reuters reports, up to 4,000 people are expected to lose their jobs at Ford’s European subsidiaries. Thus, the reduction will amount to 2.3% of the company’s total employees (174,000 people). The layoffs will occur before the end of 2027; Ford representatives have already held negotiations with union activists.
The job cuts will mainly affect branches in Germany (2,900 planned redundancies) and the United Kingdom (800 planned redundancies). Vice President, Ford of Europe Peter Godell He pointed out that the company needs “decisive actions to restructure your business” due to declining demand for electric vehicles and concerns about operating costs.
Crucially, until September of this year alone, the company’s sales in Europe fell by 17.9%, clearly outpacing the 6.1% drop for the entire automotive industry. Ford shares have already fallen 1.8% since the layoffs were announced.
