Ford job cuts: 800 UK roles go due to slow EV demand and new competition

Ford has announced it will cut 800 jobs in the UK by the end of 2027. The move is part of another major restructuring in Europe due to concerns for the health of its passenger car business, which “has incurred significant losses in recent years,” the company admits.

When announcing the cuts, Ford called the industry’s shift to electrification, and new competition – presumably Chinese electric carmakers – “highly disruptive”. The company also cited demand for electric cars being lower than expected, which has led it to adjust production plans for the all-new Explorer SUV and Capri coupe-SUV that were launched this year.  

Ford plans to axe 4,000 jobs in total across Europe, primarily in Germany and the UK, within the next three years. It’s promising there will be “minimal reductions” in other markets.

The company currently has more than 5,500 employees in the UK, and we’re told the cuts will not affect its Dagenham engine factory or Halewood transmission plant. However, Ford has other facilities and offices in the UK, which could all be impacted to varying degrees. 

The newly announced cuts are on top of the roughly 1,300 UK jobs Ford axed just last year, the majority of which came at its research and development facility in Dunton, Essex. These were part of a separate restructuring effort that saw Ford cut 3,800 jobs across Europe. 

Dave Johnston, Ford of Europe’s vice president for transformation and partnership, said, “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe.” He added that the brand is “committed to building a thriving business in Europe for generations to come.”

After news broke of these latest job cuts, a government spokesperson told Auto Express: “We know this will be a concerning time for workers at Ford UK and their families. While this is a Europe-wide decision taken for commercial reasons, we have asked the company to urgently share its full plans so we can help mitigate the impact in the UK.

“We have a longstanding partnership with Ford and will continue to work closely with them on their manufacturing future in the UK.

“We will also continue to support industry and consumers to make the switch, with over £300 million announced in the Budget to drive uptake of electric vehicles and £2 billion to support the transition of domestic manufacturing.”

Ford isn’t the only company making redundancies at the moment. Volkswagen is reportedly on the verge of mass layoffs, and could potentially close at least three of its factories in Germany. Competition from Chinese brands and slow sales for its EVs have been mooted as the primary reasons for VW’s actions as well. 

Meanwhile, Lotus confirmed to Auto Express that it’s planning to cut up to 200 further jobs soon. These are in addition to the significant job cuts the brand already made in July 2023 and earlier this year.

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