JLR to cut 4,500 Jobs
10 January 2019, 17:14 | Updated: 10 January 2019, 17:22
Most of the cuts are expected to be in the UK, with a voluntary programme being launched.
JLR employs 44,000 workers in the UK at sites including Halewood on Merseyside, and at three others in the West Midlands.
The savings and "cashflow improvements" will be made over the next 18 months.
The new job losses are in addition to the 1,500 workers who left the company last year.
Ralf Speth, chief executive of Jaguar Land Rover, said: "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."
The company also announced further investment in electrification, with electric drive units to be built at its factory in Wolverhampton and a new battery assembly centre at Hams Hall in Birmingham.
In October last year, the car giant unveiled a £2.5 billion turnaround plan that included cost cutting after Brexit uncertainty and slowing demand in China left it nursing a hefty second-quarter loss.
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.
In China, demand was adversely impacted by consumer uncertainty following import duty changes and escalating trade tensions with the US.
In the UK, "continuing uncertainty related to Brexit" was blamed.
Unite will scrutinise the business case for JLR's job cuts, and the union expects any UK redundancies to be voluntary.
Unite national officer Des Quinn said: "Jaguar Land Rover workers have had to endure a great deal of uncertainty over recent months as they continue to work hard to ensure the carmaker remains a global leader.
"With record levels of new investment and models set to come on stream in its UK factories we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain's manufacturing crown.
"Britain's car workers have been caught in the crosshairs of the Government's botched handling of Brexit, mounting economic uncertainty and ministers' demonisation of diesel, which along with the threat of a no-deal Brexit, is damaging consumer confidence.
"Government ministers need to wake up and start doing more to support UK's car workers and their colleagues in the supply chain if Jaguar Land Rover's recent success is to continue."
Business Secretary Greg Clark said the company was offering voluntary redundancy packages to their UK workforce, adding: "This is a commercial decision for the company but nevertheless it will clearly be a worrying time for Jaguar Land Rover employees and their families.
"Jaguar Land Rover is a much valued British company with a talented and dedicated workforce. The Government has, and will continue, to work closely with the business to ensure that it can succeed long into the future as it invests and transitions to autonomous, connected and electric vehicles.
"Jaguar Land Rover and its owners have made clear they remain firmly committed to the UK, continuing to invest billions and employing tens of thousands of people.
"This includes today's announcement of investment in next generation electric drive units to be produced in Wolverhampton and a new battery assembly centre in Hams Hall. Building on last year's investment in their key plants in Solihull and Halewood to build the next generation of Land Rover models, including electric vehicles."
Dr Speth stressed that JLR was committed to growing its UK business and would continue to invest to protect the future of its two "iconic" car brands.
The company reported that its sales last year were down by 4.6% to 592,708.
