Ford Motor Company (NYSE:F) stock is trading lower on Wednesday. The automobile giant announced that it will cut about 14% of its European workforce. Here's what you need to know.

What To Know: According to Reuters, Ford is cutting some of its European personnel due to weak demand for electric vehicles and intensifying competition.

Ford plans to eliminate around 4,000 positions, primarily in Germany and the United Kingdom. Although this accounts for 14% of Ford's European workforce, it represents roughly 2.3% of its global headcount.

The company expects the layoffs to take place by the end of 2027.

This follows a wave of cost-cutting measures by other vehicle manufacturers, such as Nissan, Stellantis N.V. (NYSE:STLA) and General Motors Company (NYSE:GM), driven by increasing competition from Chinese rivals and the fact that most consumers are priced out of the EV market.

Ford's European sales for the first nine months of the year have fallen by 17.9%, a sharp contrast to the 6.1% decline across the industry.

The company also points to insufficient government support for the transition to EVs, particularly in Germany, where EV subsidies ended in December. Sales of EVs in Germany dropped by 28.6% in the first nine months of this year.

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F Price Action: At the time of writing, Ford shares are trading 1.95% lower at $10.84, per data from Benzinga Pro.

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