Ford Layoffs: US Automaker Announces Plans For September, January

U.S. carmaker Ford Motor Co. (F) plans to implement a series of layoffs at a Canadian plant in both September and January.

Ford plans to cut 200 workers in September at its plant in Oakville, Ontario. The company says the layoffs are due to a "long-standing practice of matching production with consumer demand."

Further layoffs are expected at the Oakville plant in January. There are approximately 4,600 workers at the plant.

Ford also plans to lay off 12,000 workers in Europe by the end of 2020.

Ford's European president Stuart Rowley said that "Ford will be a targeted business in Europe, consistent with the company's redesign, generating higher returns through our focus on customer needs and a lean structure."

Ford is shutting down six of its 24 European plants, such as a transmission factory in France, an engine plant in Wales and three Ford facilities in Russia.

"Implementing our new strategy quickly enables us to invest and grow our leading commercial vehicle business and provide customers with more electrified vehicles, SUVs, exciting performance derivatives and iconic imported models," Rowley continued.

Ford has been engaging in layoffs to make the company more profitable and reduce its global bureaucracy.

In May, Ford said it would cut 7,000 salaried workers worldwide by the end of August. The goal is to cut 10% of Ford's global workforce and save an estimated $600 million.

"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, focus on the most valuable work and cut costs," Ford CEO Jim Hackett said. "This required intensive work across multiple layers of the company."

Ford has struggled with its earnings, with mixed sales in international markets, such as Europe.

The company hopes to especially focus on expanding its sales prospects in China, by introducing new brands of vehicles in the country.