Jaguar Land Rover will announce that it will cut up to 5000 jobs early next year as part of a major cost-cutting programme, according to the Financial Times.
The job losses will be part of a £2.5 billion turnaround plan the British firm is set to outline in January. JLR has been hit by falling demand for saloon cars and diesel engines, and posted a loss of £90 million in the third quarter of 2018. The company said that sharply falling sales in China were the key reason for the loss.
While Jaguar Land Rover boss Ralf Speth announced the 18-month cost-cutting plan when those financial results were announced in October, no specifics were given on what they involved.
But sources have told the FT that it will include job losses that “run into the thousands”, with a financial analyst that covers JLR telling the paper that up to 5000 job losses are planned.
In a statement, the firm said: "Jaguar Land Rover notes media speculation about the potential impact of its ongoing Charge and Accelerate transformation programmes. As announced when we published our second quarter results, these programmes aim to deliver £2.5 billion of cost, cash and profit improvements over the next two years. Jaguar Land Rover does not comment on rumours concerning any part of these plans."
JLR, which currently employs around 40,000 people in the UK, has already cut 1000 job at its Solihull plant – which it recently shut for two weeks – and is currently operating a three-day week at its Castle Bromwich facility, which makes its saloon car range.
The reports highlight the uncertainty facing JLR, and beyond the cost-cutting plan the company is also attempting to determine its long-term future. Autocar has previously reported this could include the radical step of turning Jaguar into an EV-only brand.
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sabre
Don't fire 5000
JLR should not fire the 5000 people, but should convert all of them to quality control jobs, for good, lasting reliable and durable cars.
lambo58
Agree with sabre
The move to electric is not radical but absolutely essential if it is to survive.
Peter Cavellini
Bad publicity........
This is what happens when a product falls out of favour because of legislation, now that Deisel and Petrol are coming to they’re end of being the primary motive force in transportation and Deisel being cited as the worst, thousands of jobs are going to be lost, I’m not saying we should trade in our Cars and buy Diesels, maybe it would have happened anyway, progress isn’t what it’s cracked up to be, we all presumed as we evolved that life and living would become easier, we’d have more leisure time,machines to do the menial work and so on, but, that’s not been the case, more labour saving devices means less demand for, means workers get sent Home, made redundant, so Jaguar’s not selling as many Cars, aren’t they all?
Peter Cavellini.
Peter Cavellini
Peter Cavellini wrote:
Peter Cavellini.
Peter Cavellini
Peter Cavellini wrote:
Peter Cavellini.
The Apprentice
First to get their cards
haudit
It's a shame for the 5,000
It's a shame for the 5,000 people who are going to lose their jobs, but in all honesty, what the hell is a company the size of JLR doing with over 40,000 employees? They have two brands and manufactured a fairly modest 530,000 cars and 300,000 engines last year.
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