Jaguar Land Rover May Axe Thousands Of UK Jobs

Tata Motors owned UK’s largest car producer, Jaguar Land Rover (JLR) is on its way to make an announcement to axe thousands of jobs as the auto giant faces significant fall in demand in China and a decline in diesel car sale in Europe, media reports said on Thursday (10).

The auto firm has prepared plans to reduce costs and raise cash flows by £2.5 billion. The plans include reducing employment costs and levels, Reuters reported citing a source who disclosed the plans on condition of anonymity.

There may be substantial job losses impacting managerial, sales, design, and other departments. However, the production-line staff will not be affected at this stage.

The firm produces a major proportion of its cars in Britain than any other major or medium sized car company. The automaker has also spent millions of pounds to prepare for Brexit, in the case of there are tariffs.

The automaker swung to a loss of £354 million during April to September period and had cut around 1000 roles in the UK in 2018. The firm had shut its Solihull plant for 14 days and announced a three-day week at its Castle Bromwich site.

JLR which has a staff strength of 40, 000 in the UK and had been adding new employees to its workforce at new plants in China and Slovakia in recent years.

Sales in China during July and September fell by 44 per cent, the biggest fall for the automaker.

Diesel accounts for 90 per cent of the firm's British sales and 45 per cent of global demand, the company said last year, as demand in the segment tumbles following new levies in the wake of the 2015 Volkswagen emissions cheating scandal.

Diesel accounts for 90 per cent of the automaker’s sales in Britain and 45 per cent of world demand, according to the company.

Akin other auto manufacturers, the JLR could see its three British car plans grind to a halt within 80 days if lawmakers reject a deal by British prime minister Theresa May next week, leading to tariffs and customs checks after a no-deal outcome.