Ford sales force in Australia to cut 350 jobs

MELBOURNE, Australia – On Friday Ford Australia took measures to cut costs by terminating the services of up to 350 employees. This translates into 15% of the manufacturing work force for the company in the country.

Amid increasing fuel prices, toughening competition between the auto manufacturers resulting in a slump of sales, companies have to make severe cuts in their costs. This often translates into cutting the labor force. The effect of the downturn in the global auto industry has arrived in Australia as well.

Ford spokesperson Sinead McAlary said that the changing global scenario with higher prices and shifts in consumer preferences have caused a rapid decline in the sales of larger vehicles which Ford has had a strong background in making.

The parent Ford Motor Company has had to make radical changes in its focus from larger vehicles to smaller ones. In the second quarter alone, the company faced a massive $8.7 billion loss while it is involved in making the shift. McAlary says the company plans to hire up to 300 employees when its smaller car, the Ford Focus, comes into operation in 2011. Until then the job cuts will have to be swallowed by the company.

Australian’s Industry Minister also gave a warning that further job cuts in the auto industry could be on the cards in the country as many suppliers are in ‘a state of distress’. Mitsubishi had already closed its Australian factory earlier this year while General Motor’s Australian arm Holden recently axed 1,100 jobs at two plants in the country.