Ford to Cut 1,000 Jobs at German EV Plant Amid Weak Demand
The move reflects broader challenges in the European electric vehicle market as consumer adoption lags behind initial forecasts.
Ford Motor Company (F) announced plans to reduce its workforce by up to 1,000 employees at its electric car production facility in Cologne, Germany, signaling significant headwinds for its electrification strategy. The decision, which contributed to a 0.6% dip in its stock price, was attributed to weaker-than-expected consumer demand for electric vehicles in the European market.
The automaker confirmed that its Cologne plant, which produces the all-electric Explorer model, will switch from a two-shift to a single-shift operation starting in January 2026. This adjustment comes after Ford into a flagship EV production hub, highlighting the financial pressures from the slower-than-anticipated EV transition.
According to the company, the When the Cologne EV center opened, analysts projected EVs would account for 35% of new vehicle registrations in Europe, but that forecast has since been revised down to just 20% by the end of 2025.
These job cuts are , which has faced what it calls "unprecedented competitive, regulatory, and economic headwinds." This move follows previous announcements of workforce reductions and shorter working arrangements at the same plant earlier in the year. The company is also set to cease production at its Saarlouis plant in Germany later this year as part of its ongoing cost-cutting measures. Ford is expected to offer voluntary redundancy packages to the affected employees in Cologne, providing a severance plan to mitigate the impact of the layoffs.