Brexit impact: Jaguar Land Rover to cut 4,500 jobs worldwide1 min read . Updated: 10 Jan 2019, 07:57 PM IST
The JLR job cuts are a response to sales slowdown caused by Brexit, flagging demand for diesel-powered vehicles and a downturn in China
London: Jaguar Land Rover Plc, owned by India’s Tata Motors Ltd, plans to eliminate 4,500 jobs worldwide, as the UK’s biggest automobile maker responds to the sales slowdown caused by Brexit, flagging demand for diesel-powered vehicles and a downturn in China. 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.
Thursday’s move is part of a £2.5 billion ($3.2 billion) push announced last year to reduce costs and boost cash flow through 2020.
“We are taking decisive action to help deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry," JLR chief executive officer Ralf Speth said in the statement. The measures are aimed at “safeguarding our future and ensuring that we maximize the opportunities created by growing demand for autonomous, connected, electric and shared technologies."
The JLR job cuts come on the same day that Ford Motor Co. said it would cut thousands of jobs in Europe as it tries to turn around a region that’s been a drag on earnings for years. Automakers are contending with a slowing global marketplace. Brexit has been a particular drag on the UK.
JLR employed more than 43,000 people during the 2018 financial year.
In June, the company said it would move production of the Discovery sport utility vehicle to Slovakia from Birmingham, England, to make room for future electric cars. The company has said that move will cost 1,200 jobs.
The company also froze production at an engine factory in the English Midlands, affecting 500 workers, for two weeks in December, citing slower demand. UK new-car sales tumbled at their steepest annual rate since the financial crisis last year. Jaguar sales increased by 4.2% in 2018, while Land Rover registrations dropped by 5.7%, according to the Society for Motor Manufacturers and Traders industry group.
Bloomberg’s Irene García Pérez contributed to this story.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.