Ford to Cut 2,900 Jobs in Germany

Ford plans significant workforce reductions in Germany as part of its efforts to lower costs and streamline operations in Europe.

By the end of 2027, the company aims to cut about 4,000 jobs across Europe, with 2,900 positions set to be eliminated at its Cologne plant in Germany.

The planned reduction in employees represents a substantial portion of Ford’s workforce at the site, where it currently employs about 11,500 workers. The decision affects both Ford’s European headquarters and the production lines for two electric models, the European-market Explorer and the recently introduced Capri SUV.

Ford has faced multiple challenges in the passenger-car segment as it navigates the transition from internal-combustion-engine models to battery-electric vehicles amid tightening CO2 emission regulations and increased competition.

The broader automotive industry in Germany continues to face pressure and job insecurity, with a combination of weak economic conditions and consumer reluctance toward BEVs.

Ford’s European management has emphasized the need for decisive action to maintain the company’s competitive position in the region. They have also called on the German government for clearer policies to support the BEV market.

In Cologne, Ford has made significant investments, including nearly €2 billion ($2.1 billion) in 2023 and 2024 to support BEV production.

The company ceased production of its small combustion-engine model, the Fiesta, in favor of electric alternatives, but they have yet to meet initial sales expectations.

Leadership changes, including the surprise departure of Ford Germany’s head, Martin Sander, to Volkswagen earlier this year, have added to the challenges facing Ford in the European region. The company now expects to have fewer than half of its current workforce in Cologne by 2027.

Ford’s Cologne plant, one of the company’s most significant manufacturing sites in Europe, has a long history dating back to 1925. Over the past 99 years, it has played a key role in Ford’s European operations as home to various successful models, including the Model T, Escort, Fiesta, Focus and Taunus.