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Jaguar Land Rover to make 'substantial' job cuts after China, diesel slump: source

Reuters  |  LONDON 

By Pitas

LONDON (Reuters) - Britain's biggest carmaker (JLR) is set to announce "substantial" job cuts in the thousands, a source told Reuters, as the company faces double-digit drops in demand in and a slump in sales for diesel cars in

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

JLR swung to a loss of 354-million pounds ($450 million) between April and September and had already in 2018 cut around 1,000 roles in Britain, shut its for two weeks and announced a three-day week at its site.

The Tata Motors-owned company has unveiled plans to cut costs and improve cash flows by 2.5 billion pounds including "reducing employment costs and employment levels."

Those cuts will be "substantial" and run into the thousands, the source told

"The announcement on job losses will be substantial, affecting managerial, research, sales, design," said the source, who spoke on condition of anonymity.

Production-line staff will not be affected "at this stage," said the source.

The company declined to comment when contacted by

JLR, which became Britain's biggest carmaker in 2016, had been on course to build around 1 million vehicles by the turn of the decade, but output in 2018 looks set to have fallen as sales in the first eleven months dropped 4.4 percent.

Sales in between July and September fell by 44 percent, the biggest slump of any market for the central England-based firm, turning the country from its biggest sales market to its smallest.

Its said in October that the firm's in "has basically been closed for most of October in order to allow the inventory of both our vehicles and inventory to start to reduce."

Like fellow automakers, the company could be faced with adding costs and bureaucracy on vehicles and components in fewer than 80 days if lawmakers next week reject a deal by

(Reporting by Pitas, editing by Guy Faulconbridge)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 13:04 IST
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