Ford Europe cuts jobs to achieve $200 million cost savings
- 8 years ago
Ford plans to cut hundreds of white-collar jobs in Europe to reduce costs by $200 million a year and revamp its model line-up as it targets sustainable profitability in the region, the carmaker said on Wednesday.
The U.S. company turned a full-year profit of $259 million in Europe in 2015, its first since 2011, helped by a 10-percent gain in vehicle sales.
It will offer a voluntary redundancy scheme to its 10,300 salaried workers in Europe including severance pay and early retirement, Jim Farley, head of Ford Europe said in an interview on Wednesday, predicting hundreds of takers.
"We want to make sure we have that stable footing so we can build a viable business in the future," Farley said, citing a longer-term operating margin target of 6-8 percent, compared with less than 1 percent achieved last year.
The U.S. company turned a full-year profit of $259 million in Europe in 2015, its first since 2011, helped by a 10-percent gain in vehicle sales.
It will offer a voluntary redundancy scheme to its 10,300 salaried workers in Europe including severance pay and early retirement, Jim Farley, head of Ford Europe said in an interview on Wednesday, predicting hundreds of takers.
"We want to make sure we have that stable footing so we can build a viable business in the future," Farley said, citing a longer-term operating margin target of 6-8 percent, compared with less than 1 percent achieved last year.