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Posted: 2023-06-21 08:35:47
  • In short: Car giant Ford says it intends to axe 400 Australian jobs in the coming months, with the majority impacting Geelong workers in design and development roles
  • What's next? The Australian Manufacturing Workers' Union says job losses won't come into effect until September and any affected members will be given support

Ford has announced plans to cut about 400 jobs in coming months as the vehicle giant looks to overhaul its operations to meet future demand. 

The planned job cuts will amount to about 22 per cent of its workforce in Australia, with the majority in product development and design roles. 

In a statement, the company said it had begun consultation with its employees and with the union of its plan to offer a "separation program" for 400 of its 1,800 Australian employees.

"The majority of these will be in product development and design, with a small number in other functions," it said.

"The changes are part of Ford's global drive to improve efficiency and transform its operations to meet future needs."

The Australian Manufacturing Workers' Union (AMWU) said most of the job losses would affect workers in the Geelong area and would not come into effect until September.

The union's vehicle industry coordinator Vince Pepi said while the redundancies were voluntary, it was "disheartening news" nonetheless.

"We estimate that around 400 jobs will be affected, with approximately 350 of those being white-collar workers and 50 to 45 being blue-collar workers," Mr Pepi said.

Workers in the Geelong area, south-west of Melbourne, are expected to face the largest job cuts.

"As part of our commitment to supporting our members during this challenging time, AMWU members are entitled to an enhanced voluntary redundancy package along with support to an outplacement program.

"We understand that this news will be difficult for many workers and their families, and we want to ensure they have all the resources they need."

"We will continue to work closely with our members and their Ford management as the situation progresses."

The announcement comes after the vehicle manufacturer announced plans in March to shed 250 jobs from its Geelong and Broadmeadows locations.

Earlier in the year, the company announced plans to cut a further 3,800 development and administrative jobs in sites across Europe over the next three years as it shifts to electric vehicles.

The union said it would provide support to any member facing redundancy, and advised them to contact their organiser or branch.

Ford said Australia would continue to be "the centre of development for the Ranger and Everest globally".

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