Tata Motor's Jaguar Land Rover to cut another 4,500 jobs worldwide

Cheryl Sanders
January 10, 2019

The losses come on top of 1,500 mainly contract roles that were cut previous year.

Some of the money saved will be reinvested in the automaker's electrification drive.

Earlier this month it was reported United Kingdom new vehicle sales in 2018 fell at their fastest rate since the global financial crisis a decade ago, hit by the collapse in demand for diesel, as the industry body warned of the existential threat to the sector posed by Brexit.

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.

The company, which employs almost 40,000 people in Britain and has been boosting its workforce at new plants in China and Slovakia in recent years, declined to comment when contacted by Reuters on Thursday.

The jobs will be lost mostly in office-based roles, including management, marketing and support staff, the company pledged.

So far, the "Charge and Accelerate" programme has identified over GBP 1 billion of improvements, with more than GBP 500 million already realised in 2018, the company said.

The firm, owned by Indian conglomerate Tata, booked a £90 million pre-tax loss in the three months to September 30, which compared with a £385 million profit in the same period in 2017. "Falling sales in China due to global trade wars as well as changing consumer attitudes to diesel vehicles have been damaging". "We have great belief in the potential of JLR's distinctive premium products and brands as well as in JLR's design and engineering capabilities", Tata Motors Chairman, N. Chandrasekaran said in late December.

The company builds a higher proportion of its cars in Britain than any other major or medium-sized automaker and has spent millions of pounds preparing for Brexit, in case there are tariffs or customs checks between the United Kingdom and Europe.

Mr Armstrong said Ford was making "tough" decisions by undertaking a "complete review" of its European operations.

New all-electric vehicles will be offered for all Ford models, while there will be a more "targeted" line up of models in the future.

"Given the difficulties that they're going through.to add further costs and further disruption from a no-deal Brexit, it's clear why they've been so clear that this would be against their interests", said business minister Greg Clark.

Mr Armstrong declined to say how many jobs will be cut, but he said the impact will be "significant". In September, Jaguar Land Rover boss Speth warned that the wrong Brexit deal could cost tens of thousands of auto jobs and risks production at the firm. That could get worse in a hard Brexit, while carmakers across the globe grapple with a downturn in China and pressure to invest in electrified and autonomous cars.

"With record levels of new investment and models set to come on stream in its United Kingdom factories we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain's manufacturing crown".

The FT reported that Ford's job losses will come as it bids to cut $14bn globally.

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