Ford chairman Bill Ford image : Ford

Automaker Ford has announced it’s slashing thousands of jobs in its European operations as part of structural cost improvements to improve near-term financial performance. The company made this known in a statement issued to investors.

“Ford aims to achieve the labor cost reductions, as far as possible, through voluntary employee separations in Europe and will be working closely with social partners and other stakeholders to achieve this objective.” The company said in its statement.

Ford CEO Jim Hackett image : Ford

These job cuts will affect both salaried and hourly workers across its operations in Europe. Ford is ending production at its plant in Bordeaux, France that manufactures small automatic transmissions by this year August and has began discussions to end production of the C-MAX and Grand C-MAX vehicles at its German facility.

It’s also considering “significant restructuring options” for its Russian joint venture, Ford Sollers and plans to merge its UK headquarters and Ford Credit Europe’s headquarters at the Ford Dunton Technical Center in South East Essex to enhance business.

2017 Ford C-Max Hybrid image : Ford

“We are taking decisive action to transform the Ford business in Europe,” said Steven Armstrong, Ford group vice president and president, Europe, Middle East and Africa. “We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering emotive vehicles to our customers.”

“Working collectively with all stakeholders, our new strategy will enable us to deliver a more focused line up of European-built passenger vehicles, while growing our import and commercial vehicle businesses – for a healthier and more profitable business,” Armstrong added.

A Ford employee wearing an exoskeleton works at a company manufacturing plant image : Ford

Ford is establishing three business groups in Europe under as part of this restructuring – Commercial Vehicles, Passenger Vehicles, and Imports, each with set goals to “better enable the businesses to make fast decisions centered on customer needs.” It’s targeting a 6 percent EBIT margin longer term, with returns in excess of the cost of capital for each business group.

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