Ford has said it will cut around 4,000 jobs in Europe, including 800 in the UK and 3,000 in Germany, as it grapples with the transition to electric vehicles (EV).

The cuts will take place by the end of 2027 and make up around 14 per cent of the firm’s workforce in Europe, which totals 28,000.

The move, subject to negotiations, will not impact Ford’s factories in Halewood and Dagenham, the company said.

However, Ford employs 5,300 people in the UK and six other sites may be affected. These include a research and development centre in Dunton Essex and a parts distribution centre in Daventry, Northamptonshire.

It comes as Europe’s carmakers struggle to contend with less-than-expected demand for electric vehicles and fierce competition from an influx of Chinese carmakers.

The German carmaker Volkswagen currently has plans to close three of its factories, cut its workers pay by 10 per cent and lay off thousands of workers. Inflation and high energy costs since Russia’s invasion of Ukraine have also hampered manufacturers.

Today’s announcement marks the second time Ford has slashed its employee count in recent years, having previously cut 1,300 jobs in the UK in 2023.

“It’s not the news anyone wants to hear at any time. So our aim is to try to deliver this through voluntary redundancy,” Lisa Brankin, head of Ford Britain and Ireland, said.

She added: “The automotive industry is going through a period of massive disruption at the moment… We’ve got unprecedented competition, regulation and lots of economic headwinds.”