Ford Motor Company says it will reduce its European workforce by 4,000 positions by the end of 2027, with most of the positions in Germany.

“The global auto industry continues to be in a period of significant disruption as it shifts to electrified mobility," the compansy said Wednesday in announcing the cuts. "The transformation is particularly intense in Europe where automakers face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles."

John Lawler, the U.S. automaker's vice chairman and chief financial officer, said Europe lacks a clear policy agenda to advance electric vehicles, including support for charging infrastructure and meaningful incentives to help consumers switch for gas-powered vehicles. Combined with inflexible emissions compliance targets, Lawler said, Ford had to make adjustments. 

The company is facing similar challenges in the U.S. In its third-quarter earnings report, Ford posted a loss of $1.2 billion on its electric lines, which brings the total loss on EVs this year to $3.7 billion. 

The layoffs in Europe follow a trend at Ford in reversing its EV drive. In April, the company delayed the launch of an electric SUV with three-rows, which was to be built at the Oakville Assembly Complex in Ontario, Canada. Then in June, the company delayed plans to produce its electric F-150 Lightnings at a plant in Tennessee. 

In July, Ford announced it would produce its diesel-powered F-Series Super Duty pickup trucks at the Canadian plant. The company still plans to launch the electric SUV, but now the start date has been pushed back to 2027.

In the statement announcing layoffs in Europe, the company said it remained committed to the European market. 

“Ford has been in Europe for more than 100 years. We are proud of our new product portfolio for Europe and committed to building a thriving business in Europe for generations to come,” Dave Johnston, Ford’s European vice president for transformation and partnerships, said in the statement.