Ford announced it will reduce its headcount in Europe by 4,000 jobs in response to waning EV demand and in an effort to increase its long-term competitiveness.

Ford has been struggling with its transition to electric vehicles, with demand waning in both the US and Europe. As a result, the company’s EV division has been losing billions. In response, the company says it will eliminate 4,000 jobs in Europe by the end of 2027.

The company is planning to further reduce its European workforce by 4,000 positions by the end of 2027, pending consultations with its European social partners. The planned job cuts will primarily impact operations in Germany but also the UK, with minimal reductions in other European markets.

In addition, due to the weak economic situation and lower-than-expected demand for electric cars, we are further adjusting the production program for the new Explorer and Capri. This will result in additional short-time working days at our Cologne plant in the first quarter of 2025.

“Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come,” said Dave Johnston, Ford’s European vice president for Transformation and Partnerships. “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.”

Ford also called out the difficult regulatory environment in the Europe, with a sizable disconnect between what regulations require automakers to do, versus what consumers want—specifically their lack of enthusiasm for EVs.

Ford recently issued an urgent call to action for industry, policymakers, trade unions, and social partners in Europe to work together for a successful industry transformation. In a letter to the German government, John Lawler, vice chairman and chief financial officer of Ford Motor Company, reiterated Ford’s commitment to Europe and to the 2035 emission targets but stressed the need for a joint commitment by all stakeholders to improving market conditions and ensuring the industry’s future success.

“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets,” Lawler said.

Ford’s decision illustrate the growing issue automakers are facing with their EV transitions. The company has already paused F-150 Lightning production as a result of low demand. Similarly, Volkswagen has scaled back its battery cell factory plans because of low demand.