Published: Tue, December 18, 2018
Finance | By Loren Pratt

Jaguar Land Rover preparing to axe up to 5000 jobs in January

Jaguar Land Rover preparing to axe up to 5000 jobs in January

Britain's biggest carmaker employs 40,000 in the United Kingdom and has already cut 1,000 temporary contract workers at its plant in Solihull, which builds Range Rovers and the Land Rover Discovery SUV.

The company, which employs 40,000 in the United Kingdom, has made a decision to cut down its workforce to combat Brexit's impact on business, declining sales in China and a fall in demand for diesel cars.

Last month we reported that Jaguar Land Rover had suffered a £90 million loss in Q3 as a host of factors - including Brexit, diesel demonisation and trade tensions in China - conspired to make the shining star of United Kingdom auto manufacturing look under siege. It has also reduced working hours for some workers, including at its Wolverhampton factory in the run-up to Christmas. The company announced plans in October to save £2.5bn, including £1bn cost cuts, but did not share information on possible job losses.

Tata Motors has appointed Boston Consulting Group to put together the turnaround plan.

Earlier this month, S&P Global Ratings cut Tata Motors's long-term rating deeper into junk on, the second downgrade for the Indian automaker in five months, citing headwinds for Jaguar Land Rover in some of its key markets.

In response, a spokesperson from Jaguar Land Rover said: "Jaguar Land Rover notes media speculation about the potential impact of its ongoing Charge and Accelerate transformation programmes". In addition, there are plans to cut £1bn in costs - this includes a recruitment and non-essential travel freeze. Add to that the prospects of a very messy Brexit and restrictions on diesel vehicles in the United Kingdom and Europe. Ralf Speth, Jaguar Land Rover CEO, announced a cost-cutting plan after posting a £90 million loss in the third quarter of 2018, but declined to provide specifics.

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