Jaguar Land Rover to cut thousands of United Kingdom jobs

PA Wire  PA Images

PA Wire PA Images

The savings and "cashflow improvements" will be made over the next 18 months and the new job losses are in addition to 1,500 workers who left the company a year ago.

Later this year, the company would start producing the next generation electric drive units (EDU) at its engine manufacturing centre in Wolverhampton.

The job cuts represented about 10 percent the company's workforce.

The firm employs more than 40,000 people in Britain and the cuts are said to be part of plans to reduce costs by £2.5 billion, the company announced.

The company has boosted its workforce at new plants in China and Slovakia in recent years.

Jaguar Land Rover has confirmed it will cut 4500 jobs as it wrestles with a ideal storm of weakening demand for its premium cars, especially in China, the uncertainties of Brexit and the rising costs of developing the next generation of cars for the electric age. The company has said that move will cost 1,200 jobs.

The firm reported a £90m pre-tax loss in the three months to 30 September, compared with a £385m profit in the same period in 2017. Total auto sales in China (JLR's biggest market) declined for the first time in two decades past year, as the nation's consumers reacted to the economic uncertainty surrounding the introduction of United States trade tariffs.

Hundreds of Wolverhampton JLR workers were sent home on full pay in the run-up to Christmas, as production was slowed down in the wake of falling sales, while around 200 jobs were axed in Solihull.

"This is not about making the business today more efficient but completely redesigning it", Ford's European president Steve Armstrong told the FT.

He said the announcement was not directly linked to Brexit, but he added that Ford will have to undertake a further review if the United Kingdom leaves the European Union without a deal in March.

At the time, it did not say how many jobs would be lost, although the Financial Times reported in December up to 5,000 jobs could go.

"Unite is positively engaging with Ford over its plans as we seek to safeguard jobs and look after the interests of all the company's employees in the UK".

Marketers, alongside managers and administrators, working for Jaguar Land Rover are expected to bear the brunt of a mass layoff at the vehicle manufacturer after it announced that 5,000 of its 44,000 strong United Kingdom workforce would lose their jobs.

General Motors said in November it would lay off 14,000 factory and white-collar workers in North America and put five plants up for possible closure as it restructures to cut costs and focus more on autonomous and electric technology.

"The next stage of this transformation programme will begin with a voluntary redundancy programme in the U.K. This strategic review will create a leaner, more resilient organisation with a flatter management structure", the company added.

The motor industry is being hit by a twin jobs blow after two of the UK's biggest carmakers announced shake-ups.

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