Ford Motor Co. announced the reduction of 4,000 jobs in Europe, with most of the layoffs involving Germany and the UK.
The decision was made in the wake of continued decline in EV demand, coupled with fierce competition from Chinese manufacturers who receive large subsidies.
The reduction of 14% of Ford's workforce in Europe is expected to be completed by 2027.
At the same time, production of the EV Explorer and Capri models at the Cologne plant will also be reduced.
Ford's market share in Europe has now fallen to 3.3%, compared to 4.1% last year.
Ford blames unclear government policies, dwindling EV incentives, and stricter carbon emissions targets in Europe and the UK.
The company's shares have fallen 27% since July, forcing CEO Jim Farley to aggressively cut costs, including closing the Saarlouis plant in 2025.
With the market challenges becoming increasingly challenging, Ford now needs to devise a new strategy to remain relevant in this industry.
Will this company be able to survive and remain relevant in the increasingly fierce EV market?
