Ford is moving on with the radical restructuring plan of its European business with the announcement that 5,000 jobs will be cut in Germany.
Following a similar announcement from Volkswagen, Ford of Europe said it is reorganizing its workforce in the region “to significantly decrease structural costs, reduce bureaucracy, empower leaders and managers, and eliminate less value-added work.”
To help accelerate the plan and return to sustainable profitability, the automaker announced that it has offered voluntary separation programs for employees in Germany and the UK. “Through these programs and other initiatives, Ford of Germany expects to reduce its headcount in excess of 5,000 jobs, including temporary staff,” the company said in a statement. The release added that the total number of UK jobs to be cut “is still to be determined.”
This move is part of a restructuring plan announced by the automaker in January that would involve thousands of job cuts, possible plant closures and the axing of vehicle lines that are not profitable.
According to the turnaround plan, Ford of Europe will establish three customer-focused business groups in the region: Commercial Vehicles, Passenger Vehicles, and Imports. Furthermore, the company will reduce the complexity of existing products, optimize the most profitable vehicle configurations and increase volumes of profitable vehicle lines.
As a result, the lineup will be more targeted, which means less profitable vehicle lines will be either improved or discontinued.
Ford has been losing money for many years in Europe and has been under pressure to fix its operations in the region ever since GM offloaded its European operations in 2017. Ford aims for a 6 percent operating margin in Europe.