Ford cuts 12,000 jobs in Europe

Car manufacturer Ford announced on 27 June that it is cutting around 12,000 jobs in Europe, amounting to more than 20% of the company’s workforce in the region. Six of its 24 factories will also close down by the end of 2020.

US-headquartered Ford, the fifth-largest carmaker in the world, is struggling with declining sales. In January it became apparent that the automotive group’s profits were down by more than half. In response, the company stated that decisive action would be necessary in order to return to profitability in Europe, although it was not clear at that time how many jobs would be lost as a result of the restructuring.

Sales in the UK, which is a particularly important market for car manufacturers in Europe, have been disappointing for some time, plus there are concerns about the consequences of the impending Brexit. Ford hopes that its drastic plan to reduce costs by US$11 billion will turn the tide. Germany, the UK and Russia will bear the biggest brunt of these measures.

Ford introduces ‘greener’ models

In addition to its cost-cutting plans, Ford announced a new strategy for Europe. Besides introducing new, ‘greener’ car models, the company is also adapting its business model. As of this month, the company is structured around three new divisions: company cars, passenger cars and import models. The divisions each have their own management team.