Ford to cut thousands of jobs in Europe

Marco Green
Января 11, 2019

The company said it would shift to more electric models and that every model from now on will have a battery version, whether a hybrid that combines internal combustion and battery power or a battery-only version. This fundamental redesign will include changes to Ford's vehicle portfolio, expanding offerings and volumes in its most profitable growth vehicle segments, while improving or exiting less profitable vehicle lines and addressing underperforming markets.

JLR is expected to confirm earlier reports that it plans to cut "up to 5,000 jobs" in the United Kingdom later today, while Ford has announced its own plans to cut "thousands" of jobs from its workforce across the region. It didn't say which models it would drop, but Armstrong said the profitable parts of the business were its SUVs and commercial vehicles.

Unite, Britain's biggest trade union said it was engaging with Ford in an effort to safeguard jobs.

He said the scale of the restructuring assumed that Britain would leave the European Union as scheduled on March 29 with a negotiated deal defining trading relations.

"If Brexit went in the wrong direction we would need to take another look to mitigate the impact of that - we will take whatever action is needed".

General Motors said in November it would lay off 14,000 factory and white-collar workers in North America and put five plants up for possible closure as it restructures to cut costs and focus more on autonomous and electric technology.

In a statement, the company said Thursday that "structural cost improvements will be supported by a reduction of surplus labor", both hourly and salaried.

It has not released any figures, as discussions with unions are continuing, but that it could be in "thousands".

Ford Europe, which employs 53,000 people, has struggled to turn a profit, reporting a €245 million ($282 million) loss before interest and taxes in the third quarter, equivalent to a negative 3.3% EBIT margin. It is already due to lose a major contract to build engines for Jaguar Land Rover in 2020.

It is understood that while this is a preoccupation for the company, it is one of many factors affecting the business, which has been underperforming for years.

"We believe Ford Europe could require as much as a 20 to 30 percent reduction of capacity and headcount", Morgan Stanley analyst Adam Jonas said in a note on Thursday.

So far the only potential alliance Ford and Volkswagen have confirmed involves commercial vehicles.

Meanwhile Jaguar Land Rover says it will cut 4,500 jobs as the carmaker addresses slowing demand in China and growing uncertainty about the U.K.'s departure from the European Union.

Management, marketing and administrative roles are expected to be hardest hit, but some production staff may also be affected.

Auto maker Ford will cut thousands of jobs across Europe as part of a major restructuring plan that will see it ditch unprofitable models and boost production of electric vehicles.

The layoffs are part of a £2.5bn cost-cutting plan amid what industry insiders have called a "perfect storm".

Other reports by

Discuss This Article