Ford Motor Co. is mulling over job lay-offs involving more than 5,000 employees in Germany alongside a reduction in its workforce in Britain as it seeks to return a profit in Europe.
Following an official statement on Friday, the company stated that it will offer voluntary redundancy programs for its employees in Germany and Britain. Reports suggest that the move was in accordance with a turnaround plan that was announced by the carmaker in January. This was said to involve thousands of job cuts, plant closures and discontinuing loss-inducing vehicle lines.
The Blue Oval had announced in December that it was working on a restructuring plan for Europe called Sprint 6 Reset and Redesign.
“Through these programs and other initiatives, Ford of Germany expects to reduce its headcount in excess of 5,000 jobs, including temporary staff,” the company said. The total number of positions affected in Britain is still to be determined, it added.
Over the past few years, the American auto giant has witnessed significant drain of cash alongside pressure to restructure its operation that has increased since its rival General Motors managed to raise profits by selling its Opel and Vauxhall brands to Peugeot.
Back in January, the company announced that it will lay off thousands of its workforce in Europe in an attempt to bring profitability to its business. The new restructuring was reported to include shutting down of major production facilities across the continent.
Ford will focus more on its pickup truck and SUV models which have impressive sales than its poor-performing sedans.
Ford has struggled with a dated model lineup and shrinking demand in the UK, which is the company’s biggest market in Europe. The UK operations of the company are not clear of the storm yet, with further disruption inbound due to Brexit.
In an official statement released then, Ford said it will seek to exit the Multivan segment, renew its operations in Russia, merge the head offices of Ford UK and Ford Credit to a site in Dunton, Essex.