Ford Europe cuts jobs to achieve $200 mil­lion cost sav­ings

The Pak Banker - - COMPANIES/BOSS -

Ford plans to shed hun­dreds of white-col­lar jobs in Europe to cut costs by $200 mil­lion an­nu­ally and is tak­ing ad­di­tional steps to re­vamp its lineup as it tar­gets durable prof­itabil­ity in the re­gion, the car­maker said to­day.

The US au­tomaker turned a full-year profit of $259 mil­lion in Europe in 2015 for the first time since 2011, helped by a 10per­cent gain in ve­hi­cle sales. Ford Europe aims to trim head­count through vol­un­tary re­dun­dan­cies, such as by of­fer­ing staff early re­tire­ment, sev­er­ance pay and other op­tions, Jim Far­ley, head of the car­maker's Euro­pean busi­ness said in an in­ter­view.

"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 be­tween 6 and 8 per­cent.

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