Ford to Slash Jobs as Part of European Shake-Up -- Update

By Nathan Allen

Ford Motor Co. detailed plans to close factories and reduce its workforce across Europe, saying the moves would affect about 12,000 jobs through measures such as layoffs and shift reductions.

The moves are part of an overhaul of Ford's unprofitable European operations announced in January and a broader cost-cutting effort as the company shifts its focus toward electric vehicles and autonomous driving.

The U.S. auto maker said Thursday it would cut its European manufacturing footprint to 18 plants from 24 by the end of 2020. It also plans to reduce shifts at its assembly plants in Saarlouis, Germany, and Valencia, Spain.

Around 12,000 jobs will be affected by the measures across Ford's fully owned operations and joint ventures, primarily through voluntary separation agreements, the company said. Around 2,000 of the cuts are in salaried positions, which are included among the 7,000 global job cuts that the company had already announced.

Ford said the restructuring will help it to reach its long-term goal of 6% margins on earnings before interest and taxes.

Ford's shake-up is the latest sign that waning demand and weaker profits in Europe -- amid concerns around Brexit, trade tensions, the gradual death of diesel engines and an economic slowdown in China -- are forcing car manufacturers to aggressively prune their businesses after years of steady growth.

(END) Dow Jones Newswires

June 27, 2019 08:29 ET (12:29 GMT)

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