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giftedviz.com January 19, 2019


Brexit impact: Jaguar Land Rover to cut 4,500 jobs worldwide

11 January 2019, 08:23 | Darnell Patrick

Image Staff gathered outside the firm's Halewood site ahead of the announcement

Staff gather outside the Jaguar Land Rover site in Halewood Knowsley Merseyside

British luxury carmaker, Jaguar Land Rover (JLR), owned by India's Tata Motors, on Thursday announced to cut around 4,500 jobs, mainly in the Britain, after lowering its employee headcount by 1,500 previous year.

JLR is to cut up to 5,000 administrative, marketing and management roles as it attempts to find £2.5 billion in savings to turn its fortunes around.

The move is part of a £2.5bn cost-cutting plan which was drawn up after JLR announced a £90m loss for the three months to September 2018.

The central English firm builds a higher proportion of its cars in Britain than any other major or medium-sized carmaker and has also spent millions of pounds preparing for Brexit, in case there are tariffs or customs checks.

JLR is particularly exposed to the first two of these factors.

China has been the company's biggest and most profitable market.

"The economic slowdown in China along with ongoing trade tensions is continuing to influence consumer confidence", said Jaguar Land Rover Chief Commercial Officer Felix Brautigam.

Diesel accounts for 90 percent of the automaker's British sales and 45 percent of global demand, the company said a year ago.

Jaguar Land Rover announced it is cutting thousands of jobs.

The company reported on Thursday a 4.6 percent drop in full-year 2018 sales to just under 600,000 vehicles.

JLR's sales have also been hurt by consumer confusion and a shift away from diesel-powered cars in Europe following the VW emission cheating scandal.

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In Solihull, 1,000 agency workers were laid off in 2017. It also has a base in Halewood on Merseyside. In the final quarter of 2018, 1,000 employees at Castle Bromwich were put on a three-day working week.

Meanwhile, Jaguar has been increasing headcount elsewhere in the world.

In China it has hired 4,000 workers since 2014.

We will bring you more information and reaction when it is announced.

Unions are keen to examine whether JLR's global plants will continue to see additional investment at the expense of the UK.

Brexit has made the future of the UK's vehicle manufacturing industry uncertain, with Toyota and Vauxhall among those to warn of negative impacts in the event of a hard Brexit.

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".

Britain's business minister Greg Clark said on Thursday it is clear why a no-deal Brexit would add to the problems with further costs and disruption.

Tata Motors stock has lost more than 60 percent of value in the last one year after outlook for the JLR brand in China, one of its key markets, roiled.

The company says the job losses will be global, but it's understood most of the redundancies will occur in the United Kingdom, where the automaker employs around 43,000 people.



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