Ford (F) has announced it will cut thousands of jobs as part of a restructuring plan to overhaul its European operations. The cost of the new strategy, the company said, will be around $11 billion and will take place over the next three to five years.
In addition to the job layoffs, Ford will end production on some of its unprofitable vehicle models as well as close a plant in France. The company is also in talks with unions about stopping production of its C-Max compact car at its German factory as well reviewing struggling markets such as Russia.
Ford has strong sales and profitability in the U.S. but lags behind competitors in China while struggling in the European and Latin America markets, CNN reported. Within the first nine months of 2018, Ford reported a loss of $199 million in Europe versus its $278 million profit in 2017 over the same time period. The company projected a fiscal loss for the region for 2018.
There is speculation that Ford and Volkswagen are looking to partner up to develop autonomous cars and related technology, CNN reported. Volkswagen is the world's largest auto manufacturer and has a strong presence in the market in Europe. The companies have only confirmed a commercial vehicle venture together to date.
Ford has approximately 53,000 employees in Europe with two engine plants in the U.K.
This story originally appeared in IBTimes US.