Ford Plans to Cut More UK Jobs in European Restructuring

Matt Posky
by Matt Posky

Having already announced plans to cut thousands of jobs in Europe in an effort to stem the region’s ongoing cash hemorrhage, Ford has reportedly begun re-examining the United Kingdom. Initially, the automaker’s restructuring plan involved ending production at a transmission plant in France, killing the C-Max in Germany, and dissolving its Ford-Sollers joint venture in Russia.

While Ford hoped to shed as many employees as possible through voluntary retirement, it acknowledged it would have to fire at least 5,000 people in Germany and an unspecified number of U.K. citizens in March. The company hasn’t settled on a figure, though inside sources claim it should be no more than 550 jobs — all of which should be of the non-manufacturing variety.

Bloomberg hoped to get an official headcount from the company after verifying its source, but only got boilerplate feedback from Ford.

“The total number of positions impacted in the U.K. is still to be determined,” the automaker said in a statement, adding that the firm will continue leaning on voluntary separation packages “to help accelerate the plan and return to sustainable profitability.”

Ford previously confirmed that its Bridgend plant in Wales will lose 350 to 400 jobs and that it would merge its U.K. offices — likely losing some staff in the process. The good news is that this probably means we know exactly where those 550-ish jobs will be lost. However, the company has previously said it would announce job cuts at the “appropriate time.” Thus far, Ford has carefully spaced out cuts to avoid sensational headlines.

We imagine the company is waiting to see how Brexit pans out before making any more big decisions. Like other automakers with a foothold in the Europe market, the British government, and about half of the country’s population, Ford is extremely wary of Brexit. It claims a no-deal exit would be a disaster for its businesses within the region, and we doubt the UK and EU’s continued postponement of the situation has made anyone feel more secure on the matter.

Global restructuring is expected to cost Ford around $11 billion in order to get Europe, South America and China where it wants them. In addition to the European factory closings, the automaker announced plans to idle a Brazilian plant and exit South America’s commercial truck business in February. All told, the company hopes its restructuring efforts will save it $25.5 billion over the next few years.

[Image: Ford Motor Co.]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Lorenzo Lorenzo on May 14, 2019

    Brexit might be a convenient excuse for backing slowly out of the UK and Europe. If they're losing money now, and the European Union government in Brussels continues to impose regulation after regulation on ICEs while promoting electric vehicles, there will be no free market in Europe, or way to make money there.

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