[Global Network Comprehensive Report] According to Reuters reported on June 27, Ford plans to lay off 12,000 people in Europe by the end of 2020, committed to returning European business to profitability. In the context of the automotive industry facing stagnant demand and high investment in low-emission vehicle research and development, layoffs are one of Ford’s initiatives to reduce costs.
In order to invest in electric, hybrid and autonomous vehicles, while also transforming internal combustion engines to meet more stringent emission standards, automakers are forced to cut fixed costs and simplify product lineups in Europe.
Ford said it has finished production at three factories in Russia, and will close factories in France and Wales in the future, and cut production in Spain’s Valencia and Saarlouis factories. Ford Europe President Stuart Rowley told Reuters: “We have basically reached a restructuring consultation plan with our partners.”
Ford has a total of 51,000 employees in Europe, and if it is a joint venture, there are a total of 65,000 employees. By the end of 2020, Ford will include a total of approximately 12,000 layoffs in Europe, including wholly-owned factories and joint ventures, mainly through voluntary resignation plans. About 2,000 of these are paid positions, and the rest are hourly workers or agents.
In January, Ford unveiled a comprehensive business assessment, including closing the plant and ending the loss of the car production line to achieve a 6% operating profit margin in Europe.
Post time: Jul-08-2019