JLR chief warns of thousands of layoffs

JLR chief warns of thousands of layoffs
PTI
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First Published: Sun, Dec 21 2008. 07 44 PM IST
Updated: Sun, Dec 21 2008. 07 44 PM IST
London: Jaguar Land Rover (JLR) has warned that it may be forced to cut thousands of jobs in the coming months unless the UK government comes forth with financial assistance and also said parent company Tata Motors is in no position to help because of global slowdown in the industry, says media report.
“David Smith, the chief executive of JLR, is understood to have told officials from the Department of Business, Enterprise and Regulatory Reform (BERR) that it would have no choice but to cut ‘certainly hundreds and probably thousands´ more jobs,” the Sunday Telegraph said in a report published online on Sunday
JLR has also made the point that its parent company Tata Motors is in no position to help because the downturn in the car industry is global, according to the report.
“Tata Motors has seen its share price plunge this year, and the company’s market capitalisation is now approximately half the value of the sum it paid for JLR,” the Sunday Telegraph said.
The report noted that the company has already cut 2,000 posts since its takeover by Tata Motors earlier in 2008. It had acquired the luxury car maker from American auto giant Ford Motor for more than US $2 billion.
“The dire prediction emerged as Lord Mandelson, the business secretary, assembled a team of city advisers from KPMG, the accounting firm, and NM Rothschild, the investment bank, to advise him on the increasingly fraught situation at JLR, which is understood to have requested a package of financial assistance worth about £500 million,” The report said.
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First Published: Sun, Dec 21 2008. 07 44 PM IST
More Topics: JLR | Jobs | Tata Motors | Britain | Corporate News |