Ford announces massive European restructuring; 12,000 jobs cut

Ford cutting 20 percent of its workforce in Europe

(William Walker/CNN)

DETROIT – Ford Motor Company announced Thursday it is reducing its workforce in Europe by 12,000 jobs.

The reductions are part of what the automaker is calling "efficiency improvements across all operations." They will be complete by the end of 2020, Ford says.

About 2,000 of those job cuts are salaried positions, which are included among the 7,000 salaried positions Ford is reducing globally, the automaker said.

Overall, it's a 20 percent cut of Ford's entire European workforce, according to Bloomberg. Six European Ford plants are going to be closed.

“Ford will be a more targeted business in Europe, consistent with the company’s global redesign, generating higher returns through our focus on customer needs and a lean structure,” said Stuart Rowley, president, Ford of Europe. “Implementing our new strategy quickly enables us to invest and grow our leading commercial vehicle business and provide customers with more electrified vehicles, SUVs, exciting performance derivatives and iconic imported models.”

In a news release, Ford said it will have at least three new nameplates in the next five years, growing the company's utility vehicle line-up.

"The new European operating model and resulting organization are effective July 1. Three new business groups – Commercial Vehicles (CVs), Passenger Vehicles (PVs) and Imports – are established to facilitate fast decision-making centred on customer needs. Each has a dedicated management organisation including leaders responsible for marketing, manufacturing and product development," reads the statement from Ford.

Read more about Ford's restructuring in Europe here.

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