Asger Risom
Ford is set to lay off 2,900 workers at its Cologne plant by 2027, as part of a major restructuring plan amid struggling EV sales and mounting financial pressure. A new deal with labor union IG Metall seeks to ease the impact, but uncertainty looms.
Ford is set to lay off 2,900 workers at its Cologne plant by 2027, as part of a major restructuring plan amid struggling EV sales and mounting financial pressure. A new deal with labor union IG Metall seeks to ease the impact, but uncertainty looms.
2,900 Jobs to Go by 2027
Ford has finalized a roadmap for laying off 2,900 workers at its largest European plant in Cologne, Germany. The cuts are expected to be completed by the end of 2027.
Severance and Early Retirement Options
Employees will be offered severance packages and partial retirement schemes. Financial protections are also in place for retirees as part of the negotiated agreement.
Forced Layoffs Still on the Table
While the deal aims for voluntary exits, it leaves room for compulsory layoffs if not enough workers accept the offered terms.
Union Sees Deal as Lifeline
Labor union IG Metall welcomed the agreement, calling it a “safety net” that helps ease existential fears among employees. Spring protests and strikes had fueled tension at the plant.
Plant Restructuring Amid EV Shift
The layoffs are tied to Ford’s broader shift away from combustion engines. The Cologne plant has ceased all ICE vehicle production and is now focused exclusively on electric cars.
EV Launches Off to a Slow Start
Ford’s new EVs—the Explorer and Capri, both based on Volkswagen platforms—have failed to meet sales expectations. The sluggish demand has already led to a production cut.
Small Signs of Recovery
Despite the rocky start, recent weeks have shown slight growth in EV sales, offering a glimmer of hope for Ford’s future in the European market.
Industry-Wide Job Cuts Continue
Ford is not alone in trimming its workforce. Volvo Cars recently announced similar-scale layoffs in Sweden, as European automakers grapple with the costly transition to electric mobility.
