FRANKFURT, Germany — Ford Motor Co. says it will reduce its workforce by 4,000 people in Europe and the United Kingdom by the end of 2027, citing economic headwinds and pressure from increased competition and lower-than-expected sales of electric cars.

Ford said on Wednesday that most of the job cuts would take place in Germany and would be carried out in consultation with employee representatives.

The company said it would also reduce working hours for workers at its factory in Cologne, Germany, where it makes the Capri and Explorer electric vehicles.

Dave Johnston, Ford’s European vice president for transformation and partnerships, said in a statement that “taking difficult but decisive action is essential to ensure Ford’s future competitiveness in Europe.”

The company said that “the global automotive industry continues to experience a period of significant disruption as it shifts toward electrified mobility.”

“The transformation is particularly intense in Europe where automakers face significant competitive and economic headwinds while tackling the disconnect between CO2 emissions regulations and consumer demand for electrified vehicles,” says the press release.

European automakers must sell enough electric vehicles to meet new, lower limits for their fleet’s average carbon dioxide emissions in 2025. Sales of electric vehicles have lagged as consumers, weary of inflation, have curbed spending and after Germany’s main auto market abandoned government incentives to buy electric vehicles.

The Association of European Automobile Manufacturers has called for a faster review of the lower C02 limits planned for 2026.