Ford disclosed on Thursday that it plans to cut a total of 12,000 jobs in Europe by the end of 2020, in a bid to return the American company to profit. This announcement came as part of the recently reported rebuilding the company is undergoing.
The general figure covers 5,400 dismissals declared in Germany and 1,700 in Wales.
The move is part of the organization plans to close or sell six plants in Britain, France, Russia, and Slovakia in 2019 and 2020.
This development will come “primarily through voluntary separation programmes,” announced Ford
The company has around 51,000 workers who work in 24 factories all over Europe.
Ford said it had stopped operations at three plants in Russia. Also, it is shutting plants in France and Wales and has cut shifts at manufacturing plants in Saarlouis, Germany and Valencia, Spain.
Ford openly announced for the first on Thursday the effect of the proposed plan.
Group CEO Jim Hackett declared last fall a massive rebuilding of the American firm, planning to save $11 billion and transform Ford into an increasingly “agile” group with quicker basic leadership processes.
The organization plans to make up for lost time with the world leaders in the business change towards self-driving and electric-power automobile, in addition to services like vehicle sharing and ride-sharing.
Ford declared that “financial results in Europe are on track to significantly improve for the full year 2019”, including that in the future, the focus will be electric vehicles.
It will redesign its European operations into three divisions: passenger vehicles, commercial vehicles, and imports.
The European Automobile Manufacturers’ Association announced on Thursday that it expected vehicle deals in the EU to fall in this year for the first time in many years. Slow economic growth and uncertainty surrounding Brexit deal, as well as trade disagreement with the United States.
Vehicle manufacturing in the UK has dropped continuously for 12 months as reported by the Society of Motor Manufacturers and Traders. Outputs dropped by 15.5% year on year in May, as indicated by figures published on Thursday.