Ford to cut 5,000 jobs in Germany, more in U.K. in effort to reduce costs in Europe

Copyright 2018 CNN

Ford Motor Company is an American multinational automaker headquartered in Dearborn, Michigan, and was founded by Henry Ford.

Ford will cut 5,000 jobs in Germany with more coming in the U.K. as the company looks to reduce costs in Europe.

The automaker offered voluntary separation packages for employees in Germany and the U.K. to help accelerate its plan to improve performance in the region, where Ford has struggled, according to CNBC.

The total number of jobs affected in the U.K. have yet to be determined.

Ford announced earlier this year that major cuts were coming in global operations.

Whether jobs will be cut in North America remains a question, although the five-year turnaround plan the company is executing makes it appear likely.

Ford announced in April 2018 it was making cuts to its car lineup as part of a plan to trim $11.5 billion off of its operating costs. Chief Financial Officer Bob Shanks said the company will cut $5 billion from capital spending from 2019 to 2022, reducing it from $34 billion to $29 billion.

The company will spend less on low-performing areas such as small cars and most Lincoln vehicles, although Shanks said Lincoln sales are growing and the brand is not in jeopardy. More capital will be allocated to higher performing areas such as trucks and sport utilities, he said.

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