"The company has incurred significant losses in recent years," Ford said in a statement, blaming "the industry shift to electrified vehicles and new competition".
The move will affect 2,900 jobs in Germany, 800 in the UK and 300 in western Europe by the end of 2027, a Ford spokesman told AFP.
"It is critical to take difficult but decisive action to ensure Ford's future competitiveness in Europe," said Dave Johnston, Ford's European vice-president in the statement.
The company also said it was adjusting the production of its Explorer and Capri models, resulting in reduced hours at its Cologne plant in the first quarter of 2025.
Europe's car industry has been plunged into crisis by high manufacturing costs, a stuttering switch to electric vehicles and increased competition in key market China.
READ ALSO:Â Is Germany really on course to cut 140,000 auto industry jobs in a decade?
Germany's Volkswagen has been among those hardest hit, announcing in September that it was considering the unprecedented move of closing some  factories in Germany.
"The European automotive industry is in a very demanding and serious situation," Volkswagen CEO Oliver Blume said at the time.
Ford had already announced in February 2023 that it was planning to cut 3,800 jobs in Europe, including 2,300 in Germany and 1,300 in Britain.
The company said then it was planning to reduce the number of models developed for Europe, concentrate on the profitable van segment and speed up the transition to electric vehicles.
Ford currently has around 28,000 employees in Europe with 15,000 in Germany, according to the company's works council.
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