Jaguar Land Rover to cut 4500 jobs in Brexit slump

Jaguar Land Rover to cut 4500 jobs in Brexit slump

Jaguar Land Rover to cut 4500 jobs in Brexit slump

Auto giant Jaguar Land Rover will announce up to 5,000 job cuts later on Thursday, according to reports.

Most of the cuts will be in the United Kingdom, with a voluntary programme being launched, and are in addition to 1,500 workers who left the company a year ago.

Demand in China, which had once been one of its strongest countries but has since been hit by a slowdown, fell by 21.6 percent, the biggest drop of any of its markets.

Armstrong said that there "will be thousands" of job losses at Ford, which now employs 53,000 people in Europe, including its two United Kingdom engine plants at Bridgend and Dagenham.

Mr Clark said: "Jaguar Land Rover is a much valued British company with a talented and dedicated workforce".

JLR builds a higher proportion of its cars in Britain than any other major or medium-sized carmaker and has spent millions preparing for Brexit, in case of tariffs or customs checks.

If, as expected, the United Kingdom bears the brunt, or the entirety, of JLR's global cost-cutting, JLR may well say it tried to warn us.

The cuts are in response to the challenges of declining sales in China, the dramatic reduction in the diesel market in the United Kingdom and overseas as well as the uncertainty brought about by Brexit.

"We are taking decisive action to help deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry", JLR chief executive officer Ralf Speth said in the statement.

Sales of cars in China dropped by 6%, to 22.7 million, during 2018, according to the China Passenger Car Association (CPCA) in the market's first decline for two decades. Roy Rickhuss, the general secretary of Community, said: "This news will worry all those working in Britain's manufacturing sector".

Ninety percent of its vehicles are diesel-powered, although it has been investing in new electric and hybrid vehicles.

On the JLR cuts, Mr Quinn said: "With record levels of new investment and models set to come on stream in its United Kingdom factories, we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain's manufacturing crown".

The layoffs come amid what industry insiders have called a "perfect storm".

It comes amid global trade tensions which have made Chinese consumers more cautious.

It has hired 4,000 workers in China since 2014.

Jaguar, owned by India's Tata Motors Ltd., employed more than 43,000 people during the 2018 financial year.

In June, the company said it would move production of the Land Rover Discovery sport utility vehicle to Slovakia from Birmingham, England, to make room for future electric cars.

Business Secretary Greg Clark said the company was offering voluntary redundancy packages to its United Kingdom workforce, adding: "This is a commercial decision for the company but nevertheless it will clearly be a worrying time for Jaguar Land Rover employees and their families".

As well as its United Kingdom manufacturing centres, JLR also has facilities in Brazil, Austria, Slovakia, India and China.

Related news