Ford Motor Co. plans to reduce its workforce in China as its sales decline in the world's largest auto market. The job cuts are expected to exceed 1,300.

In 2022, Ford experienced a significant decline in wholesale vehicle sales in China, dropping below half a million units for the first time in ten years. 

This downward trend has been ongoing since 2016, when the US automaker shipped 1.27 million vehicles and held a market share of 4.6 per cent.

As Chinese consumers increasingly favour electric vehicles produced by companies like Tesla Inc. and local players such as BYD Co., Ford's market share dwindled to 2.1 per cent last year.

“Our costs are not competitive, and we are working internally and with our partners to reduce costs in all areas. We can only win through a lean and agile organisation. These actions are necessary for us to build a healthier and more sustainable business in China,” a Ford spokeswoman wrote in an email response to Bloomberg News. 

CNBC reported that she did not disclose the exact number of jobs to be eliminated or provide a specific timeline.

Earlier this year, Ford announced its intention to reduce its workforce by 3,800 jobs throughout Europe. This decision was driven by increasing costs associated with the transition to electric vehicles (EVs). 

With a global workforce of approximately 173,000 employees, Ford has also committed to investing $50 billion in EV production by 2026.

“China remains a very important market and Ford is committed to developing our business here. We will continue to accelerate our electrification transformation in China. Our new localised EV products are under development now. We are also working with our partners to strengthen our EV business, including expanding the distribution,” the spokeswoman said.