Ford Europe cuts jobs to achieve $200 million cost savings
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.