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Jaguar Land Rover To Cut Up To 5,000 Jobs

Jaguar Land Rover To Cut Up To 5,000 Jobs
Jaguar, Land Rover

Today Jaguar Land Rover (JLR) is set to announce the loss of up to 5,000 UK jobs. This represents approximately 12.5% of its total UK workforce.


It is believed that roles in management, marketing and administration will be hardest hit, with some production staff also affected.


The cuts are the result of JLR's £2.5 billion cost-cutting plan following a slump in diesel sales, a significant reduction in demand from China - its most profitable market and post-Brexit competitiveness concerns.


The first two of the three factors have had a particularly pronounced effect. Amid global trade tensions the Chinese market has been cautious and reluctant to purchase high ticket items. As a result sales in China have fallen 50% in recent months. In addition, JLR has endured difficulties meeting terms and incentives of its Chinese sales network, only compounding difficulties in its largest market.


JLR also continues to be impacted by the VW emissions scandal, which increased market skepticism as to the performance that can be achieved from a diesel engine. Presently, ~90% of vehicles produced are diesel powered, although it is currently investing in electric and hybrid vehicles.


Brexit uncertainty has undoubtedly had a significant influence upon job cuts, especially as the UK is its base for global manufacturing. JLR has been clear in requiring more certainty around Brexit to encourage more UK investment. It is believed that a "no-deal" Brexit would cost the company greater than £1.2 billion in profit each year.

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