Jaguar Land Rover to cut up to 5,000 jobs
Jaguar Land Rover will announce up to 5,000 job cuts as the carmaker addresses slowing demand in China and growing uncertainty about the U.K.’s departure from the European Union. The luxury carmaker employs 44,000 workers in the UK at sites in Halewood on Merseyside and Solihull, Castle Bromwich and Wolverhampton in the West Midlands.
In October last year, the car giant unveiled a £2.5 billion turnaround plan that included cost-cutting after Brexit uncertainty and slowing demand in China left it nursing a hefty second-quarter loss.
The firm, owned by Indian conglomerate Tata, booked a £90 million pre-tax loss in the three months to September 30, which compared with a £385 million profit in the same period in 2017.
In China, demand was adversely impacted by consumer uncertainty following import duty changes and escalating trade tensions with the US. In the UK, “continuing uncertainty related to Brexit” was blamed.
The firm, owned by India’s Tata, last year outlined a 2.5 billion ($3.2 billion) turnaround plan after Brexit, Chinese trade tensions with the U.S. and new European emissions standards left Jaguar with a pre-tax loss of 90 million pounds in the three months to Sept. 30, which compared with a 385 million pound profit in the same period in 2017.
Today’s job losses come on top of cuts made last year.
- In Solihull, 1,000 agency workers were laid off in 2017.
- At Halewood in Merseyside, 180 agency staff were cut.
- In Castle Bromwich, 1,000 employees were put on a three day week for the last three months of 2018.