Ford confirms 5000 European job losses
Ford has confirmed some 5000 jobs in Germany will be cut, as well as an undisclosed number in the United Kingdom.
The cuts will come through a voluntary redundancy program for employees and other initiatives. "Through these programmes, Ford of Germany expects to reduce its headcount in excess of 5000 jobs, including temporary staff," the company said in a statement.
These are a result of Ford’s cost-cutting plan for Europe, where more than 50,000 people are currently employed. HQ wants an eight per cent profit margin by 2020 and will dedicate $US11 billion to the restructuring cause.
Losses from China and Europe totalled in excess of $800m for the fourth quarter of 2018 alone. The company expects a loss overall in 2018 compared with a $US234m profit in 2017.
As a result, European operations will be split into three arms - passenger cars, commercial vehicles and imported vehicles.
Ford CEO, Jim Hackett, said at the Detroit Motor Show that Ford “has the right people but in Europe we need to work on the business model.”