Jaguar Land Rover (JLR) is expected to cut 5,000 jobs from its 44,000-strong work force amid slowing demand for the carmaker in China and fears over Brexit uncertainty, according to reports.
The move, also thought to be a result of lower demand for diesel cars, forms part of cost-cutting plan worth £2.5bn, which was devised after JLR suffered hefty financial losses in 2018.
The firm reported a £90m pre-tax loss in the three months to 30 September, compared with a £385m profit in the same period in 2017.
Job losses, expected to be announced on Thursday, will mainly involved management, marketing and administrative roles but it is feared there could be some cuts in production too.
JLR is a major employer in the Midlands with plants in Solihull, Castle Bromwich and Wolverhampton. It also has a base in Halewood on Merseyside.
In China, demand has been adversely impacted by consumer uncertainty following import duty changes and escalating trade tensions with the US.
In the UK, “continuing uncertainty related to Brexit” has been blamed.
JLR’s figures were also dented by the introduction of European emissions standards known as WLTP, which resulted in a fall in demand for diesel cars.
At the time boss Ralf Speth said: “In the latest quarterly period, we continued to see more challenging market conditions.
“Our results were undermined by slowing demand in China, along with continued uncertainty in Europe over diesel, Brexit and the WLTP changeover.”
The anticipated announcement of job losses on Thursday is not the first time the company has made cutbacks in recent years.
In 2017, 1,000 temporary contract workers at its plant in Solihull lost their jobs.
Ahead of Christmas 2018 the company reduced the hours for a number of workers. One thousand people employed at its Castle Bromwich factory had their working week cut down to three days. JLR said it regularly reviewed “its production schedules to ensure market demand is balanced globally”.
“In light of the continuing headwinds impacting the car industry, we are making some temporary adjustments to our production schedules at Castle Bromwich,” the company said.
Thursday’s announcement is expected to include details of sales for 2018, the business outlook for this year, an update on cost savings and planned investment in UK plants.