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

“The global automotive industry continues to experience a period of significant disruption as it moves toward electrified mobility,” the group said Wednesday in announcing the cuts. “The transformation is particularly intense in Europe where automakers face significant competitive and economic headwinds while a disconnect between CO2 regulations and consumer demand for electrified vehicles.”

John Lawler, vice president and chief financial officer of the US automaker, said Europe lacks a clear policy agenda to advance electric vehicles, including support for charging infrastructure and meaningful incentives to help consumers to opt for gasoline vehicles. Combined with inflexible emissions compliance goals, Lawler said, Ford has had to make adjustments.

The company faces similar challenges in the United States. In its third-quarter earnings report, Ford recorded a loss of $1.2 billion on its power lines, bringing the total loss of electric vehicles this year to $3.7 billion.

The layoffs in Europe follow a trend at Ford to reverse its EV policy. In April, the company delayed the launch of an electric SUV three-row, which was to be built at the Oakville assembly complex in Ontario, Canada. Then in June, the the company delayed the projects to produce its electric F-150 Lightning at a factory in Tennessee.

In July, Ford announcement it would produce its F-Series Super Duty diesel pickup trucks at the Canadian plant. The company is still planning to launch the electric SUV, but the launch date has now 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 present in Europe for over 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 European vice president for transformation and partnerships, said in the release. .