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Jaguar Land Rover to cut workforce by 4500

10 January 2019

Jaguar Land Rover, which is owned by India's Tata Motors (TTM), employs 42,500 people in the United Kingdom and 1,500 workers in other countries.

"In the last couple of decades, Ford of Europe has never really been sustainably profitable", Steven Armstrong, company vice-president and head of its operations in Europe, Middle East and Africa said in a conference call with reporters.

The cuts, representing roughly 10 per cent the company's workforce, are part of a $3.2 billion (2.5 billion-pound) push announced a year ago to reduce costs and boost cash flow through 2020. But sales in China have fallen almost 50% in recent months as cautious Chinese consumers have been holding back on big ticket purchases amid global trade tensions.

Owned by India's Tata Motors, JLR also said it will build electric drive units at its Wolverhampton engine plant and create a new battery assembly centre in Hams Hall, near Birmingham, as it develops a greener vehicle range.

So far, the "Charge and Accelerate" programme has identified over GBP 1 billion of improvements, with more than GBP 500 million already realised in 2018, the company said.

In the United Kingdom, "continuing uncertainty related to Brexit" was blamed.

Meanwhile, Ford signalled "significant" cuts among its 50,000-strong European workforce under plans to make it more competitive and make its business more sustainable. JLR said it regularly reviewed "its production schedules to ensure market demand is balanced globally". "This is in addition to the 1,500 who left the company during 2018", Tata Motors said in a filing to the Bombay Stock Exchange.

"This is not about making the business today more efficient but completely redesigning it", Ford's European president Steve Armstrong told the FT.

"Britain's auto workers have been caught in the crosshairs of the Government's botched handling of Brexit, mounting economic uncertainty and ministers' demonisation of diesel, which along with the threat of a no-deal Brexit, is damaging consumer confidence".

The report said JLR had been hit by a slump in Chinese sales, a downturn in diesel vehicle sales and fears about Britain's competitiveness after Brexit.

New all-electric vehicles will be offered for all Ford models, while there will be a more "targeted" line-up of models in the future.

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.

Some 5,000 jobs will be cut, mainly in management, marketing and administrative roles, the BBC reported.

Jaguar Land Rover and Ford are preparing to implement cost cutting plans which will result in thousands of job losses for the UK's automotive sector.

Are you a Jaguar Land Rover employee?

"With record levels of new investment and models set to come on stream in its United Kingdom factories we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain's manufacturing crown".

Jaguar Land Rover to cut workforce by 4500