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Ford announces jobs cuts in Europe

Axed: Ford has announced it will cut 12,000 jobs from its European operations.

About 12,000 job cuts for Ford in Europe with plant closures, shift reductions

28 Jun 2019

FORD has announced its facility closures in Europe will result in about 12,000 job losses, forming part of a business reshuffle designed to streamline its structure and increase profitability.


The company confirmed the shuttering of two assembly factories and one engine plant in Russia, and the Ford Aquitaine Industries transmission plant in France, as well as the proposed closure of the Bridgend engine plant in South Wales, which was announced earlier this month.


Furthermore, the Kechnec transmission plant in Slovakia will be sold to Magna International.


Closing six plants brings Ford’s European manufacturing footprint to 18 facilities and will result in the loss of 10,000 blue-collar jobs.


The other 2000 jobs losses will come from salaried white-collar positions, which represent part of the 7000 salaried workforce cuts announced by Ford in May.


In the UK, the Ford of Britain and Ford Credit Europe headquarters in Warley, England, will be closed, with the operations to be consolidated at the Dunton Technical Centre in Essex.


Ford is aiming to complete the list of layoffs by the end of 2020 while also enforcing shift reductions at its assembly plants in Saarlouis, Germany and Valencia, Spain.


According to Ford, the layoffs will come primarily through voluntary redundancy programs.


Ford of Europe president Stuart Rowley said it was a difficult decision for the brand to proceed with the layoffs.


“Separating employees and closing plants are the hardest decisions we make, and in recognition of the effect on families and communities, we are providing support to ease the impact,” he said.


“We are grateful for the ongoing consultations with our works councils, trade union partners and elected representatives.


“Together, we are moving forward and focused on building a long-term sustainable future for our business in Europe.”


Ford has announced a number of job reductions in recent times, announcing in January that 40 salaried, 75 hourly and 90 temporary powertrain engineering jobs will be made redundant in Australia’s product development operation.


Along with the European job-cut announcement, Ford also announced it will be bringing three new nameplates to market in the next five years, including the Mustang-inspired full-electric SUV that will not be coming to Australia.


Ford hopes the trimming of its European workforce will allow for a six per cent improvement of its earnings before interest and tax margin in the long term, and help improve its financial results in the continent.

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