Ford Motor Co. says it will reduce its workforce by 4,000 in Europe and the U.K. by the end of 2027, citing headwinds from the economy and pressure from increased competition and weaker-than-expected sales of electric cars.

Ford plans to cut another 4,000 jobs in Europe by the end of 2027 as part of its restructuring. The company blamed the “weak economic situation” and “lower-than-expected” demand for electric cars.

Ford has been undergoing a painful restructuring in Europe, announcing 3,800 job cuts in February 2023. It is closing its Saarlouis plant in Germany next year, with further job cuts. The European Union has slapped tariffs on Chinese-made EVs, saying they benefit from unfair government subsidies.

The EV market is struggling in Europe, where sales of new EVs in Germany dropped nearly 37 percent in July 2024 from the same month a year ago. The German government recently ended its subsidy program for EVs, which had provided up to around €6,000 toward the purchase of new battery-electric and plug-in hybrid cars.

Ford has announced plans to cut 4,000 jobs across its European operations while scaling back production targets for its Explorer and Capri electric vehicles (EVs). The move affects 14 percent of the automaker’s workforce on the continent,

Automaker says most reductions will be in Germany and the UK, citing slowing electric vehicle sales and growing market competition.

Ford has officially announced plans for a major restructuring in the European market. The brand is planning further significant cuts due to decreased demand for electric vehicles and growing competition from China.