Report claims JLR will cut up to 5,000 jobs from its workforce

Carmaker employs more than 4,000 people at its factory in Halewood in Merseyside and around 40,000 across the UK and has declined to comment on the Financial Times report. Tony McDonough reports

JLR Halewood
Jaguar Land Rover employs more than 4,000 people at its factory in Halewood


Carmaker Jaguar Land  Rover is not commenting on reports that it is planning to cut 5,000 jobs from its 40,000-strong UK workforce.

Reports over the weekend claim JLR, which employs more than 4,000 people at its factory in Halewood in Merseyside, was planning to cut the jobs as part of a cost-cutting drive after reporting losses of £90m in the three months to September.

The company has been hit by falling sales in Europe and China and has already announced a turnaround plan to find cost savings of £2.5bn. It has already cut 1,000 contract jobs at Solihull and reduced hours at its plant in Wolverhampton.

A report in the Financial Times over the weekend claimed that the company, which has appointed Boston Consulting Group to devise the turnaround plan, will make an announcement in January that it will cut 5,000 jobs. 

However, in a statement JLR said: “Jaguar Land Rover notes media speculation about the potential impact of its ongoing charge and accelerate transformation programmes.

“As announced when we published our second-quarter results, these programmes aim to deliver £2.5bn of cost, cash and profit improvements over the next two years. Jaguar Land Rover does not comment on rumours concerning any part of these plans.”

Range Rover Evoque
Jaguar Land Rover has unveiled the next generation Range Rover Evoque


Uncertainty over Britain’s departure from the EU is also clouding the forward picture for JLR, which is owned by India-based Tata Motors. Chief executive Ralf Speth has issued several dire warnings this year about the possible impact of a no-deal Brexit on the firm.

In November, JLR unveiled the next generation Range Rover Evoque – a vehicle that will be assembled by workers at Halewood. Originally  launched in 2010, the Evoque has accounted for one in four Land Rover sales over the last eight years and has become global success with 80% of the cars being shipped to overseas buyers.

JLR is investing £1bn in the new model including a pledge to spend £110m at Halewood to prepare the plant for production of the new Evoque. Workers employed at the site also assemble the Discovery Sport model.

Mr Speth said in November: “In excess of £4bn contracts have been placed with UK companies to support production of the new Evoque, testament to Jaguar Land Rover’s continued confidence in the competitiveness of its domestic suppliers.

“The company’s £1bn investment in the new Evoque covers research, development, design, advanced technology engineering and manufacturing.”

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