Ford to cut thousands of jobs in major operations shake-up
In a bid to turn around unprofitable parts of its business, Ford is planning a broad restructuring. This could involve cutting thousands of jobs in the UK and Europe and the closure of some production plants.
“We are looking to make a step-change in the performance of the business,” said Steve Armstrong, Ford’s Head of Europe. “There will be significant impact across the region. We will be looking at all options.”
These changes are expected to include a review of operations in Russia and combining the headquarters of Ford UK and Ford Credit. Ford has also said that it will look to exit the multi-van segment.
If Brexit goes in the wrong direction and we have a hard Brexit, we would need to look again about what we could do to mitigate the impact of that.
Steve Armstrong – Ford’s Head of Europe
Armstrong said that there would be a review of the company’s manufacturing footprint and that the closure of plants would “not be off the table”.
Armstrong also commented on Brexit, saying that a further review of UK operations would be necessary in the event of a ‘no-deal’ exit from the EU. He said: “If Brexit goes in the wrong direction and we have a hard Brexit, we would need to look again about what we could do to mitigate the impact of that [in the UK]”.
Ford saw an 82% drop in profits in Europe in 2018. This has been due, in part, to the fall in the value of the pound following Brexit uncertainty. The manufacturer employs around 53,000 workers in Europe, 13,000 of which are based in the UK, Spain, Russia, France, Germany, Turkey, Romania and Belgium.
This news comes as Jaguar Land Rover has announced that it’s cutting 5,000 UK jobs.
This announcement from Ford is particularly concerning for the Bridgend plant which is set to lose a major Jaguar Land Rover contract next year.