Ford said it would cut 4,000 jobs from its business in Europe, while also lowering production estimates for its upcoming Explorer and Capri electric vehicles.

The planned cuts, which amount to 14 percent of the automaker’s European operations, will primarily affect its workers in Germany and the UK, with “minimal reductions” coming from other European markets.

It also comes at a tough time for Ford, which has been dealing with disruptions both at home and abroad. The company recently paused production of its F-150 Lightning truck until after the new year in response to lower-than-expected demand.

The Explorer and Capri EVs are assembled at Ford’s factory in Cologne, Germany, which is at the center of the automaker’s push to go all-electric on the continent by 2030. But that plan has run into significant obstacles, forcing the automaker to retrench as it explores its options. The company reduced its ranks in Europe by over 35 percent over the past five years, including 3,800 jobs cut last year.

The rise of competition from Chinese automakers has also fueled Ford’s reductions. European regulators recently raised tariffs on Chinese imports to stem the flow of inexpensive EVs to the continent. The company’s CEO Jim Farley spoke about driving a Xiaomi SU7 for several weeks to learn how the country has cracked the code on cheap EVs.

“What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets,” Ford CFO John Lawler said in a statement.

The EV market is struggling in Europe, where sales of new EVs in Germany dropped nearly 37 percent in July 2024 from the same month a year ago. The German government recently ended its subsidy program for EVs, which had provided up to around €6,000 toward the purchase of new battery-electric and plug-in hybrid cars.

Meanwhile, Ford’s share of Europe’s passenger car market shrank to just 3.3 percent in the first nine months, from 4.1 percent in the same period last year, according to Bloomberg, citing the European Automobile Manufacturers’ Association.