Image: Ford Image: Ford

The US car manufacturer, Ford, has announced plans to cut 7,000 jobs around the world by the end of August.

The company said the cuts will be made through a combination of voluntary and forced redundancies that will see its workforce shrink by 10%. It's a move that will save it $600 million (£400m) a year.

Ford already announced plans to cut 5,000 jobs in Germany. It has not yet revealed how many of the cuts will come in the UK.

Ford's chief executive Jim Hackett said: "The total number of positions impacted in the UK is still to be determined."

In a letter to workers, Mr Hackett said: "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.

"[It will create] a more dynamic, agile and empowered workforce, while becoming more fit as a business."

The news comes just months after the US' biggest car manufacturer, General Motors, announced 14,000 job cuts.