Ford to cut thousands of jobs in Europe under 'transformation strategy'

Ford is expected to cut thousands of jobs across Europe, including the UK, as part of a major shake-up of its operations.

The BBC has reported that no cuts at its UK factories are thought to be imminent, but Ford Europe boss Steven Armstrong said that should the UK leave the EU without a negotiated deal, a further review of UK operations would take place.

The redundancies come as part of the manufacturer’s comprehensive transformation strategy aimed at strengthening the Ford brand and creating a sustainably profitable business in Europe.

The announcements comes in the same week that Jaguar Land Rover confirmed it would cut 4,500 jobs globally as part of its ‘Charge and Accelerate’ programme.

 Armstrong, group vice-president and president Europe, Middle East and Africa, said: “We are taking decisive action to transform the Ford business in Europe.

“We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering emotive vehicles to our customers.”

Near term, Ford is looking to reduce ‘structural costs’, including reducing ‘surplus’ labour across all functions – salaried and hourly. It aims to achieve as far as possible through voluntary redundancies.

One change which will affect Ford’s operations in the UK is its plan to consolidate its UK headquarters and Ford Credit Europe’s headquarters at the Ford Dunton Technical Centre in south east Essex to improve business fitness and create a customer-centric technical hub.

The manufacturer said it will also change its vehicle portfolio, expanding offerings and volumes in its most profitable growth vehicle segments whileimproving or exiting less profitable vehicle lines and addressing underperforming markets.