Yesterday the Financial Times reported Jaguar Land Rover’s plans to cut 5,000 of its 40,000 workforce in the UK.
In an article by Automotive News Europe, the automaker giant will outline measures in January as part of a three-year cost-cutting program, the paper said, citing several unidentified people close to the company.
JLR has been hit hard due to trade tensions between China and the U.S, low demand for diesel cars in Europe and costs associated with Britain’s departure from the EU.
Tata Motors said in October that it plans to cut costs and improve cash flows at JLR by 2.5 billion pounds over 18 months in a turnaround plan. Tata did not say how many jobs would be lost. JLR will first focus on cash saving “quick wins” such as reducing non-product investments and speeding asset sales, Tat claimed in an investor presentation.
Jaguar Land Rover declined to comment on the Financial Times report.
- Jaguar to move UK production of Land Rover Discovery to Slovakia
- Jaguar boss warns tens of thousands of automotive jobs at risk in a hard Brexit
- Jaguar Land Rover plans two week shutdown of Solihull plant in October
- Jaguar Land Rover global sales figures drop to tumbling demand in China
The company, alongside many others is also preparing for Brexit next year without a deal, threatening to disrupt the entire auto-industry.
CEO Ralf Speth warned Prime Minister Theresa May in September that a bad Brexit deal could put tens of thousands of jobs at risk and cost the company more than 1.2 billion pounds a year.
Investment advisers Evercore ISI said JLR needs to do more than cut costs, reduce capital expenditure and turn around its China business.
It said: “The company needs to consider whether it’s spreading itself too wide and whether competing with the Germans in the tough premium sedan segment is a viable strategy,” it said.
Image credits to: Jaguar Land Rover
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