Car making giant Ford set to cut 550 UK jobs in Essex as part of operations restructuring
- The American car maker already confirmed 5,000 job cuts in Europe
- Between 500 and 550 UK staff will be offered voluntary redundancy, reports say
- Around 800 jobs have been cut at the firm’s gearbox plant in Bordeaux, France
- Job cuts are part of a wider £14bn cost-trimming programme to make European outputs more efficient
Ford is reportedly set to cut 550 UK jobs as part of an operations restructuring announced earlier this year.
The American car maker confirmed in March that it had offered voluntary redundancy programmes to around 5,000 employees in Germany, while an undisclosed number of workers in Britain would also be impacted.
Originally it was suggested that 1,150 staff could be affected, though sources told City A.M. that it will be 500 to 550 ‘white collar, salaried employees’ including those in management positions at Ford UK’s headquarters in Essex.
Automotive job cut misery continues: Ford UK is set to announce that it will offer redundancy packages to between 500 and 550 staff in Essex, reports claim
Job cuts across the continent are part of a wider £14 billion global cost-trimming programme to make Ford’s European outputs more efficient.
In a statement released on two months ago, the brand said: ‘The goal is to significantly decrease structural costs, reduce bureaucracy, empower leaders and managers, and eliminate less value-added work.
‘Within this context, in March we confirmed that we would offer voluntary separation programmes for employees in Germany and the UK to help accelerate the plan and return to sustainable profitability.
‘Through these programs and other initiatives, we expect to reduce in excess of 5,000 jobs in Germany, including temporary staff. The total number of positions impacted in the UK is still to be determined.’
City A.M. said the forthcoming announcement is not expected to impact the 5,000-strong UK manufacturing workforce that’s spread across factories in Dagenham, Bridgend and Halewood.
Ford hopes the cost-cutting exercise will help the company increase its pre-profit earnings by up to $11million (£8.2million) over the next three to five years.
As well as reducing the workforce, Ford will also restructure its range and axe a number of less popular cars.
Most of these will be MPVs aimed at families, as more customers opt for SUVs for their means of transport.
Production of the C-MAX and Grand C-MAX models in Germany will be halted, and Ford’s gearbox factory in Bordeaux, France – employing some 800 staff, is also due to close.
Production of the Ford C-Max and Grand C-Max will cease in Germany due to fall in demand for MPVs
More than 1,000 job cuts will be made at Ford’s Bridgend engine plant in Wales, though this is said to be unrelated to the wider restructuring of European operations
Ford has recently cut 370 jobs in Bridgend in Wales, with a further 900 set to go by 2021, though this is said to be unrelated to this latest operations restructuring process.
The manufacturer employs around 13,000 people in the UK and around 54,000 in Europe.
The reports are the latest in a raft of body blows delivered to Britain’s automotive sector.
Earlier this week Honda confirmed its intentions to close its Swindon plant by 2021, resulting in 3,500 job losses.
There have also been claims that Jaguar Land Rover will be sold by current owner Tata to the PSA Group (Peugeot and Citroen) with the brand racking up substantial losses and culling some 6,000 jobs.
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