Ford has confirmed it will cut 7,000 employees worldwide by the end of August to make an annual saving of £470 million
Ford will cut 10 per cent of its global salaried workforce by the end of August 2019 as it looks to save $600 million (roughly £470 million) a year. These cuts are part of an “organisational redesign process” that will see approximately 7,000 Ford employees around the world lose their jobs.
Ford says one of the goals of the redesign is to “reduce bureaucracy” by cutting the size of its management structure by 20 per cent.
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In a statement, Ford said the process would help “create a more dynamic, agile and empowered workforce”. The firm acknowledged that it would be a “challenging time” for some employees, but said the redesign was “necessary to position Ford for success”.
Ford could cut 550 UK jobs as part of European restructuring
Ford could cut up to 550 jobs in the UK as part of a massive restructuring of its European operations, it has been reported.
The American manufacturer confirmed in March that would be cutting around 5,000 jobs in Germany and an undisclosed number in the UK, but a source told City A.M. that between 500 and 550 “white collar, salaried employees” are expected lose their jobs at the brand’s offices in Essex.
The cost-cutting plan is intended to increase pre-profit earnings by up to $11m (£8.2m) over the next three to five years. As well as job losses, the company will be axing “less profitable vehicle lines”, and shifting away from MPVs to SUVs. Production of the C-MAX and Grand C-MAX in Germany is ceasing, and Ford’s gearbox factory in Bordeaux, France is to close.
In a statement, Ford said: “As part of a comprehensive European business transformation announced in January, we are reorganising our workforce in the European region.
“The goal is to significantly decrease structural costs, reduce bureaucracy, empower leaders and managers, and eliminate less value-added work. Within this context, in March we confirmed that we would offer voluntary separation programmes for employees in Germany and the UK to help accelerate the plan and return to sustainable profitability.
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“Through these programs and other initiatives, we expect to reduce in excess of 5,000 jobs in Germany, including temporary staff. The total number of positions impacted in the UK is still to be determined.”
Ford also confirmed that any UK job losses as part of its European restructuring would be unrelated to its previously announced plan to cut up to 400 jobs at its Bridgend Engine Plant in South Wales.
Ford employs 13,000 people in the UK and around 54,000 in Europe. The company is targeting a six per cent profit margin in Europe, which would be higher than has previously been achieved in the region.
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