Jaguar Land Rover (JLR) will today announce it is cutting up to 5,000 jobs from its 40,000 strong United Kingdom workforce.
The BBC reports up to 5,000 employees could be cut at the company. They will affect mostly workers in the United Kingdom, including contractors, senior management, supervisors, engineering, and design workers, according to people familiar with the matter who asked not to be named discussing details that weren't announced. JLR said it regularly reviewed "its production schedules to ensure market demand is balanced globally". Jaguar, a symbol of British carmaking, and Ford are both vulnerable to a United Kingdom market that tumbled the most in 2018 since the depths of the financial crisis.
JLR plans a voluntary redundancy scheme, to help manage the latest round of job cuts.
The luxury carmaker employs 44,000 workers in the UK
JLR lost 354 million pounds ($452 million) between April and September.
Registrations dropped 6.8 percent a year ago to 2.37 million vehicles, the largest fall since sales nosedived 11.3 percent in 2008, according to data from the Society of Motor Manufacturers and Traders (SMMT) showed.
In July last year, the company said it needed more certainty around Brexit in order to continue investing in its United Kingdom operations and warned that a "no-deal" Brexit would cost the company more than £1.2bn in profit each year.More news: R. Kelly attorney on sexual abuse allegations
He said: "In JLR, market conditions, particularly in China, have deteriorated further. It's the single biggest challenge", JLR's finance chief, Ken Gregor, told analysts on a financial results call in November.
Diesel accounts for 90 percent of the firm's British sales and 45 percent of global demand, the company said past year, as demand in the segment tumbles following new levies in the wake of the 2015 Volkswagen emissions cheating scandal. Diesel has been pummelled since the Volkswagen emissions cheating scandal of 2015, prompting a crackdown and higher levies, Reuters reports.
If, as expected, the United Kingdom bears the brunt, or the entirety, of JLR's global cost-cutting, JLR may well say it tried to warn us.More news: Ramsey to have Juventus medical
Jaguar Land Rover has been saying for more than a year that Brexit uncertainty would eventually take its toll on the perception of the United Kingdom as a stable and competitive base for global manufacturing. The layoffs, representing roughly 10% the company's workforce, come on top of the 1,500 people who left in 2018, the company said Thursday in a statement. In June, JLR said it would move production of the Land Rover Discovery to Slovakia from Birmingham, England, to make room for future electric cars.
The company started consultations with unions, with details of job cuts not expected until later in the year, although staff based at Warley in Brentwood will move to Dunton in Essex.
This year, the second-generation Range Rover Evoque will go on sale and the highly anticipated new Land Rover Defender will be revealed.More news: Hudson-Odoi 'has no plans' to sign new Chelsea deal