Ford is to cut at least 7,000 jobs, including about 550 in the UK, as it presses ahead with plans to reduce costs in Europe and the US.

The US carmaker said it planned to cut 10% of its global workforce by the end of August, after announcing plans to shrink its European operations this year.

The cuts are expected to save Ford $600m (£471m) a year, helping it improve its profit margins, as carmakers manage weak global demand and ready themselves for a period of upheaval caused by a shift to electric vehicles.

Ford did not say how many jobs would go in the UK but the company is expected to shed about 550 employees spread across its sites in Dagenham, Bridgend and Halewood.

In a memo to staff on Monday, the chief executive, Jim Hackett, said the restructuring plan would start on Tuesday, with the majority of cuts being finished by 24 May.

“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 and focus on the most valuable work, and cost cuts,” he wrote.

Ford first announced widespread cuts across its European operations in January but did not give further details. It is hacking back its European operations in an attempt to increase profit margins, including shutting down loss-making vehicle lines.

The US carmaker is to abandon the multivan market – of vehicles with more than five seats – stop manufacturing automatic transmissions in Bordeaux from August, review its operations in Russia, and combine the headquarters of Ford UK and Ford Credit at a site in Dunton, Essex.

Germany will bear the brunt of the company’s European retrenchment, with about 5,000 jobs to be lost when temporary staff are included.

Ford did not blame Brexit for its cost-cutting plans but has said a no-deal scenario could make matters worse. It said leaving the EU without a deal would result in costs of $500m to $1bn during 2019 alone, adding to a series of stark warnings from major car firms over potential disruption to British manufacturing.