Ford to Cut 500 UK Jobs

American motoring giant Ford has recently announced it will cut at least 500 UK jobs, as part of a massive global cost reduction scheme. The company is set to slash a total of 7,000 jobs globally – 10% of its international workforce – in order to save around $600 million per year.The news is another severe blow to the UK car manufacturing industry. A number of other leading companies have already stated they will cut jobs and close plants this year: Jaguar Landrover are set to axe 4,500 UK jobs, while Honda will close its Swindon plant at the cost of 3,500 jobs.

  What’s Behind the Closure?

Global demand for cars isn’t what it used to be. This, combined with the need for major manufacturers to plan for the ever growing electric vehicle market, has forced a number of global vehicle manufacturers to take action. In Ford’s case, this means cutting costs and trimming certain parts of the company down to size in order to reallocate resources, and adapt.

Jim Hackett, Ford’s Chief Executive, said: “To succeed in our competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision-making and focus on the most valuable work, and cost cuts.”.

While the cuts to UK jobs are serious, Germany faces a huge cut back of around 5,000 positions, including temporary staff. Additionally, in another effort to save costs, Ford also plans to completely pull out of the multivan market, while also closing down manufacturing sites in France.

  Brexit Impacts

Brexit has certainly been a leading reason for a number of companies based in the UK, including some leading car manufacturers, to review their operations. Ford claims that Brexit isn’t the case for their current closures, however, pointing out that the cutbacks are part of a wider global strategy.

That said, the company did confirm that a no deal Brexit would probably be disastrous for the UK car industry, with potential £1 billion for Ford alone.

Currently at least, Ford does plan to keep a presence in the UK, with goals to merge Ford UK headquarters and Ford Credit into a single site in Essex.