Ford is to cut nearly 4,000 jobs in Europe, as it restructures to meet economic and electric vehicle challenges.

Ford said the job cuts would enable it to “compete and win in a highly competitive region that is facing significant economic and geo-political headwinds”

The cuts, equating to one in nine jobs, will be made over the next three years through voluntary redunancies and will include 2,800 engineering roles along with around 1,000 administrative, marketing, sales and distribution functions.

The vast majority of the cuts will be made in Germany and the UK, which will lose 1,700 and 1,300 staff respectively.

In the UK, most of the job losses, which account for a fifth of its workforce, will be at its Dunton research site. But the BBC has reported that Ford’s production sites at Halewood, Dagenham and Daventry will not be affected.

It’s the latest restructure for Ford, which announced in 2019 that it was cutting 12,000 jobs in Europe while it also closed its Bridgend engine plant in September 2020.

Speaking today, the carmaker said the job cuts would enable its organisation and product line-up to “compete and win in a highly competitive region that is facing significant economic and geo-political headwinds”.

Martin Sander, general manager of Ford Model e in Europe, commented: “Paving the way to a sustainably profitable future for Ford in Europe requires broad-based actions and changes in the way we develop, build and sell Ford vehicles. This will impact the organisational structure, talent and skills we will need in the future.”

The shift to electric vehicles is also a major factor in the job cuts – the brand has previously committed to offering an all-electric fleet in Europe by 2035 and now says it’s pushing ahead with a smaller, more focused and increasingly electric product portfolio.

Production of its first European-built electric passenger vehicle is set to start later this year, offering a targeted 500km (311-mile) electric range. It will be developed under Ford’s alliance with Volkswagen and based on VW’s MEB architecture also used for vehicles such as the ID.4. This will be joined by a further two new electric cars and four new eLCVs in 2024.

In the future, Ford says it will be defined by a new line-up of iconic vehicles inspired by its American heritage and differentiated through software and services. Commercial vehicles will also factor big in this, driven by the Ford Pro brand.

“We are completely reinventing the Ford brand in Europe. Unapologetically American, outstanding design and connected services that will differentiate Ford and delight our customers in Europe,” added Sander. “We are ready to compete and win in Europe. Our first European-built electric passenger vehicle is being introduced this spring and will surely turn heads.”

Ford’s review of its product portfolio has already led to the decision to drop the Fiesta supermini, which stops production in June 2023. The Mondeo, once a stalwart among fleets, bowed out in April 2022 after 29 years.

Its plans for an electric line-up have already seen the brand commit £380m to its Halewood factory, which is being transformed into an EV components plant that will produce motors for use in 70% of Ford EVs sold in Europe by 2026.