Ford cuts nearly 1,000 jobs due to low demand for electric cars in Europe
- Ford Motor Company is reducing its workforce by up to 1,000 jobs at its Cologne plant due to lagging demand for electric vehicles.
- This follows a restructuring plan that was announced in late 2024, affecting a total of 4,000 positions across Europe.
- The ongoing job cuts highlight the challenges Ford faces as it adjusts production in response to lower-than-expected sales in the electric vehicle market.
In Germany, Ford Motor Company is restructuring its workforce as part of a response to disappointing demand for electric vehicles. The company disclosed that it intends to reduce its employee count by up to 1,000 at its plant in Cologne, where it produces electric versions of cars, specifically the Explorer SUV. This decision arises from the company's ongoing evaluation of its production volumes and was triggered by demand for electric cars being considerably lower than anticipated in the European market. The company's job reductions are linked to a broader restructuring plan that was revealed in November 2024. This plan aims to downsize Ford’s operations in Europe, including cutting a total of 4,000 jobs, with Germany accounting for 2,900 of those positions. The measures taken are aimed at aligning Ford's workforce with the actual market demand in a region where electric vehicles only captured 15.6% of the market in mid-2025, up from 12.5% the previous year. The challenges faced by Ford in Europe reflect a shift in consumer behavior, compounded by the withdrawal of purchase subsidies in Germany, which has impacted sales of electric vehicles. While the company sold 260,000 vehicles across its entire lineup in the first half of 2025—marking a slight increase of 0.7%—it has become clear that the company's leap into electric vehicle production has not yet met market expectations. Ford’s shift to a single shift production model at the Cologne plant beginning in January is indicative of the readjustments companies are making in the wake of fluctuating consumer demands. The substantial workforce reduction reveals the struggle traditional automotive manufacturers face in transitioning to electric vehicles while adapting their business strategies to align with the evolving marketplace in Europe.