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

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

The savings and "cashflow improvements" will be made over the next 18 months and the new job losses are in addition to 1,500 workers who left the company previous year.

Some of the money saved will be reinvested in the automaker's electrification drive.

The company's move follows plans announced previous year to reduce white-collar jobs across the company's global business.

The JLR layoffs, representing roughly 10% the company's workforce, come on top of the 1,500 people who left in 2018.

Other UK-based automakers have also been vocal about their Brexit concerns, including Toyota (TM) and Nissan (7201.T), which produce a combined 640,000 cars in the country each year.

"In light of the continuing headwinds impacting the vehicle industry, we are making some temporary adjustments to our production schedules at Castle Bromwich", the company said.

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 firm, owned by Indian conglomerate Tata, booked a £90 million pre-tax loss in the three months to September 30, which compared with a £385 million profit in the same period in 2017.




"The economic slowdown in China along with ongoing trade tensions is continuing to influence consumer confidence", said JLR Chief Commercial Officer Felix Brautigam. Production-line workers won't be affected, they said.

He said: "We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering emotive vehicles to our customers". The European Union has set lower limits for vehicle carbon dioxide emissions from 2021 that are pushing carmakers to include more electric vehicles in their future sales mix.

"This is not about making the business today more efficient but completely redesigning it", Ford's European president, Steve Armstrong, told the Financial Times. Separately, Ford has warned that more than 7,000 engine and gearbox manufacturing and development jobs are under threat after the American company said it is shaking up its European operations.

"Unite is positively engaging with Ford over its plans as we seek to safeguard jobs and look after the interests of all the company's employees in the UK".

Ford's Armstrong said pressure to build electric and hybrid cars had forced the vehicle maker to make choices about where to allocate its capital.

"Jaguar Land Rover is expanding a business-wide organisation review aimed at reducing the size of its global workforce by around 4,500 people". It's hoping that many will go through a voluntary redundancy programme.

The motor industry is being hit by a twin jobs blow after two of the UK's biggest carmakers announced shake-ups.

Most recently it announced it would move all production of the Land Rover Discovery to a new plant in Slovakia with plans to hire up to 3,000 workers.