Ford may slash 12% of jobs to revive its European business

Ford Motor may cut up to 24,000 jobs and stop producing models such as the S-Max, Galaxy and Mondeo as it tries to revive its European business, the Sunday Times reported.

Ford lost $73 million in Europe between April and June, hurt by declining diesel sales and weak car offerings, the newspaper said. Ford faces additional uncertainty from Brexit, which could lead to tariffs on cars and parts traded between the U.K. and continental Europe, the Times said.

Morgan Stanley analysts estimate Ford will shed 12 percent of its 202,000 workers, mainly in its European operations, the Times reported. Ford has about 12,000 workers in the U.K. in factories, research and development, administration and dealerships, according to the newspaper.

Ford is likely to end production of the Mondeo midsize sedan, and Galaxy and S-Max large minivans in favor of more profitable SUVs, the Times said, citing unnamed people familiar the plans. The sources said Ford may also cut its amount of dealerships.

Ford Europe President Steven Armstrong said the company is focused on “aggressively attacking costs, implementing facility and product program efficiencies to lower product and material cost, as well as capital intensity in Europe,” the Times reported.