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 said on Wednesday it would cut around 14% of its European workforce, blaming significant losses in recent years compounded by weak demand for electric vehicles, a lack of government support for the shift to EVs,

Ford outlined plans to lay off 4,000 employees in the U.K. and Germany in response to a series of losses it blamed on unprecedented competitive, regulatory and economic headwinds in Europe’s car market.

The reductions amount to around 14% of Ford European workforce and will primarily hit operations in Germany and the U.K. by the end of 2027.

Ford becomes the latest car maker to seek deep cost savings as it grapples with timid demand for electric vehicles and rising competition.

Ford said on Wednesday it would cut around 14% of its European workforce, blaming losses in recent years amid weak demand for electric vehicles, poor government support for the shift to EVs, and competition from subsidized Chinese rivals.

The job cuts will mostly affect Germany and the UK. They follow "significant losses" in Ford's passenger vehicle operations and an uncertain outlook.