Ford will cut 2,900 jobs in Cologne: Politics must create a better framework

The U.S. automaker Ford plans to cut almost one in four jobs at its most important European location in Cologne. By the end of 2027, 2,900 positions are to be eliminated in Germany in order to reduce costs, as the company announced. This is almost entirely focused on Cologne, where the company currently has around 12,000 positions according to its own information - and only minimally involves other small Ford presences, such as sales offices. In the UK, Ford also plans to cut 800 positions and another 300 in other EU countries.

The Saarlouis location is not directly affected by the current plans, as job cuts are already in full swing there. In Saarland, Ford will end its internal combustion engine car production by the end of 2025 and thereafter plans a significantly smaller location focused on the service business.

Ford manager Marcus Wassenberg portrayed the drastic step in Cologne as unavoidable, as the company also wants to operate "a strong business in Europe" in the future.

"We must therefore implement difficult but determined measures to ensure Ford's competitiveness in Europe."

Works council reacts angrily

At the Cologne location, the mood among Ford employees is already gloomy, after all, around 2,000 employees in production are currently on short-time work. Now the next, much worse news is reaching the whole location. In response to the unexpected job cuts, the works council announced "fierce resistance". "It's a black day for Ford," said Ford Germany's works council chairman, Benjamin Gruschka, sharply criticizing the management. 

"I can't remember such a ruthless approach from the company." There will likely be a confrontation between employers and employees at Ford in Cologne that has never occurred before. "We will not support this downsizing," he said. Gruschka and other employee representatives pointed out that layoffs for operational reasons were excluded until the end of 2032 according to a company agreement. There is no option for the employer to terminate this agreement. 

Nevertheless, manager Wassenberg was resolute. "We are firmly committed to Europe, we are firmly committed to Germany, but in this difficult transformation, we too must adjust our costs," said the managing director of Ford-Werke.

The European headquarters and the production of two electric car models, as well as a spare parts center and development department, are located in Cologne. It is not yet known how much is to be cut in each company division. In the passenger car segment, Ford has reportedly made significant losses in recent years. The company emphasizes that the costs of switching to electric cars are high and that there are new electric competitors. Additionally, CO2 emission targets are a hindrance to the business.

Demand for e-cars has plummeted 

Ford is not alone with its problems. Ultimately, all German car manufacturers are currently under significant pressure. Following the discontinuation of government subsidies for electric cars, demand has plummeted, and the sluggish economy and job fears are also leading to consumer hesitation in purchasing.