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Ford to cut 850 jobs

Updated on 05 February 2009

Source ITN

US Car giant Ford has announced it is to axe up to 850 jobs in the UK.

The company said it is in response to the "serious economic situation" affecting the motor industry.

The Transit van plant in Southampton will be hardest hit, with between 400 and 500 jobs set to go by May.

Another 350 jobs will be lost across the company through a restructuring of salaried staff.

Ford also announced that it wanted to "re-evaluate" this year's pay deal of 5.2 per cent, saying that its business situation had worsened "significantly" since it was drawn up last October.

The company said in a statement: "Such a serious step would not normally be contemplated but in the unprecedented circumstances the priority is to ensure a sustainable Ford Motor Company."

John Fleming, chief executive of Ford of Europe, said: "As demand across the industry continues to fall, we are facing some immediate and major challenges which require us to take decisive action to reduce all our costs, and to do so in ways which will best protect our business for the long term and ensure that we are well positioned to be among the winners when recovery does come.

"Those companies which act quickly in taking the right decisions will be those who not only survive but who emerge strongest from this deep recession. We aim to be one of those who emerge stronger than before."

© Independent Television News Limited 2009. All rights reserved.

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