Jaguar-Land Rover to cut 4,500 jobs worldwide

Staff gather outside the Jaguar Land Rover site in Halewood Knowsley Merseyside

The news that the auto manufacturer, which has a 44,000-strong United Kingdom workforce, is set to cut around 4,500 jobs was broken this morning (Tuesday January 10).

Jaguar Land Rover (JLR) is expected to announce plans to cut thousands of jobs as part of a £2.5bn plan to reverse losses.

JLR said the 4,500 global redundancies will start will voluntary redundancies as unions promised to "scrutinise the business case" for the cuts.

Total vehicle sales in China (JLR's biggest market) declined for the first time in two decades past year, as the nation's consumers reacted to the economic uncertainty surrounding the introduction of U.S. trade tariffs.

"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", Speth said. He promised a future range of British-built electric vehicles.

The savings and "cashflow improvements" will be made over the next 18 months.

The job cuts are a part of the GBP 2.5 billion cost reduction and cashflow improvement efforts that the company is now undertaking, for over 18 months period.

Jaguar Land Rover has been saying for more than a year that Brexit uncertainty would eventually take its toll on the perception of the United Kingdom as a stable and competitive base for global manufacturing.

"If Brexit were to go in the wrong direction, we would have to have another look at what we have to do", he said.

JLR has sites in Halewood on Merseyside and Solihull, Castle Bromwich and Wolverhampton in the West Midlands.

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A spokesman for Theresa May said: "JLR have been very clear that they regard the United Kingdom as home and are investing in the future to develop the next generation of vehicles". Through our modern Industrial Strategy, we are building on those world beating strengths and investing in the future to put the United Kingdom at the forefront of the next generation of electric and autonomous vehicles.

Past year it also cut around 1,000 jobs, shut its Solihull plant for two weeks and announced a three-day week at its Castle Bromwich site.

Unite, Britain's largest manufacturing union, has warned it will press the carmaker to safeguard its members' jobs and blamed the Government's Brexit plans.

"Rolls-Royce belongs to Britain", he said. The looming threat of a disastrous no-deal Brexit is already having a real impact on jobs.

In 2017, 1,000 temporary contract workers at its plant in Solihull lost their jobs.

Ford is overhauling its European operations in an attempt to increase profit margins, including shutting down lossmaking vehicle lines.

Ford's $14 billion global cost-saving plans includes exiting the minivan segment, stopping manufacturing of automatic transmissions in Bordeaux in August, reconsidering its operations in Russian Federation, and combining the headquarters of Ford U.K. and Ford Credit to a site in Dunton, Essex.

"This is not about making the business today more efficient but completely redesigning it", Ford's European president, Steve Armstrong, told the Financial Times.

JLR now employs 40,000 people in the United Kingdom, mostly in the West Midlands.

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