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Tata Motors-owned JLR plans to cut thousands of jobs in new year: Report

The UK luxury carmaker will outline the measures in January as part of a three-year cost-cutting program

Tony Jordan & Thomas Beardsworth | Bloomberg 

jaguar, JLR
A tyre is seen on Jaguar Land Rover's I-PACE concept car on display ahead of it's 2018 production launch as Jaguar's first fully electric SUV at their 'Tech Fest' in London | Reuters

will announce plans early next year to cut thousands of jobs as part of a turnaround strategy, the Financial Times reported, citing several unidentified people close to the company.

The UK luxury carmaker, owned by India’s Ltd, will outline the measures in January as part of a three-year cost-cutting program, the report said. In October, it outlined plans to deliver cost and cash flow improvements of 2.5 billion pounds ($3.15 billion) within 18 months.

does not comment on rumours concerning any part of these plans,” a spokesman for the company said by email on Sunday.

cut Tata Motors’ long-term rating deeper into junk on Tuesday, the second downgrade in five months, citing headwinds for in some key markets, including China. JLR’s euro-denominated bonds due in 2026 have fallen to about 84 cents on the euro since they were sold at par in September, according to data compiled by Bloomberg.

is also bracing for the possibility of the U.K. exiting the European Union next year without a deal, threatening to disrupt auto-industry supply chains. Chief Executive Officer Ralf Speth warned Prime Minister Theresa May in September that a bad Brexit deal could put tens of thousands of jobs at risk and cost the company more than 1.2 billion pounds a year.

First Published: Mon, December 17 2018. 10:01 IST