Ford slashes 20 per cent of its European workforce

Ford will cut 20 per cent of its workforce across its European business as part of mass restructuring in a bid to slash costs and boost profits within the region.

As part of the reorganisation, the US car-maker has announced it will reduce the number of manufacturing facilities from 24 to 18 by 2020.

Germany, the UK and Russia will face the biggest cuts with around 12,000 Ford employees set to lose their jobs.

Falling car sales and the uncertainly surrounding Brexit have been both blamed for most of the job losses in the UK, which includes the closure of the Bridgend engine plant in South Wales.

In France, Ford said it will wind down its operations at a transmission plant and pull the plug on a joint-venture with Magna in Slovakia.

Meanwhile, in Russia, two assembly plants and an engine plant will close.

Ford has already announced that as part of the changes, it will phase out the C-Max, Grand C-Max minivans and the Ka+ city-car in Europe, where the slow-selling Mondeo mid-sizer and Galaxy and S-Max people-movers are also on thin ice.

Following the job cuts, Ford says some of cash saved will be reinvested in developing new electric and hybrid powertrains and autonomous vehicles.

According to Autocar, Ford Europe will add three all-new model nameplates in the next five years, in addition to the all-new Puma small SUV, all-new Mustang-inspired performance crossover and the redesigned Kuga/Escape.

The long-term goal of streamlining its operations in Europe is lifting its operations profit margin to eight per cent.

Currently Ford Europe has around 51,000 employees in the region, or 65,000 if you include those working as part of joint-ventures.