The automotive industry is facing significant challenges. Rising costs, slowing demand, and a shift to electric vehicles have put immense pressure on automakers.
Companies are adjusting their strategies to stay competitive, which often includes job cuts and production changes. Ford is one of the latest manufacturers to take drastic steps in response to these difficulties.
Ford has announced another wave of layoffs, focusing heavily on its European operations.
The company is cutting 4,000 jobs, with most of the impact centered in Germany.
In Cologne, Ford plans to shut down most of its development division. This decision will result in the elimination of 2,900 positions, more than a quarter of the workforce at the site.
Focus on U.S.
Employees in Cologne have expressed frustration over the company’s plans.
Benjamin Gruschka, an employee representative, said workers no longer trust the statements from management.
There is also uncertainty about Ford’s commitment to developing new models in Europe. Many fear that key development tasks will be moved to the United States.
The job cuts extend beyond Germany, according to Boosted.
In the United Kingdom, 800 employees are being let go. Slower-than-expected sales of electric vehicles have pushed Ford to reduce production plans for two upcoming EV models.
Ford’s downsizing is not limited to workforce reductions.
The company has sold its import operations in Denmark to a third-party distributor. This sale, finalized in September 2024, marks another step in Ford’s efforts to restructure its European business.
These actions come as Ford faces increasing competition and a challenging market. The slow adoption of electric vehicles and high costs have made it difficult for automakers to maintain profitability.
Ford’s decision to shift more of its focus back to the U.S. signals a significant change in its approach to global operations.
