Jaguar Land Rover cuts 1000 jobs

Joanna Estrada
Апреля 16, 2018

Shares of Tata Motors fell more than 4 % in morning trade after Jaguar Land Rover said it is planning to cut jobs to scale back production at some of its United Kingdom sites.

Britain's biggest carmaker said it had been informing employees about the decision on Monday - after reports had emerged last week.

"In light of the continuing headwinds impacting the auto industry, we are making some adjustments to our production schedules and the level of agency staff", a JLR statement had said.

"We are not renewing the contracts of 1,000 agency workers at Solihull", a spokesman told Reuters.

It said it would continue to recruit large numbers of engineers and apprentices, adding it remains committed to its United Kingdom plants.

Brexit uncertainty has been blamed as one of the factors in the drop in new vehicle demand, as well as a slump in diesel sales that has hit the two luxury carmakers particularly hard.

There are now 3,200 people employed at Castle Bromwich and 10,000 at Solihill.

Jaguar sales are down 26% so far this year whilst Land Rover demand dropped 20% in its home market as buyers shun diesel.

JLR chief executive Ralf Speth has pointed to weakness in the economy as well as a drop in demand for diesel and tax changes for creating a "reaction in the consumer base".

Jaguar reduced production at its Halewood plant back in January in response to sinking demand, but that move wasn't thought to involve any job losses.

"It's unfortunate that in the United Kingdom demand is not there anymore, and the United Kingdom is our home market".

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