Brexit: Jaguar Land Rover to cut 1000 contract jobs

Jaguar Land Rover to cut jobs and production – and to blame Brexit

Jaguar Land Rover to cut jobs and production – and to blame Brexit

Jaguar Land Rover (JLR) plans to shed around 1,000 jobs from two of its manufacturing plants in the Midlands due to declining vehicle sales.

While Jaguar Land Rover (JLR) is yet to confirm the exact number of jobs to be lost, some reports indicate that around 1,000 temporary workers are likely to be hit.

Despite the reported job losses, JLR says it plans to continue to recruit "large numbers of highly skilled engineers, graduates and apprentices".

"We also remain committed to our United Kingdom plants in which we have invested more than £4 billion since 2010 to future proof manufacturing technologies to deliver new models", JLR added.

Those cuts were made at its Halewood plant in Merseyside.

Britain's biggest carmaker is understood to be cutting output and not renewing the contracts of agency staff at its Solihull plant, while hundreds of permanent staff could be switched from its Castle Bromwich site to Solihull.

"With JLR's United Kingdom production facilities exporting around 75% of its vehicles and importing many parts from the European Union, this action is in part an effort to help mitigate potentially-costly tariffs, which could significantly damage its bottom line".

A source told new agency Reuters that 1,000 roles would be slashed as part of the moves.

Speaking to Sky's Ian King in March, chief executive Ralf Speth had said: "The economy is weaker in the United Kingdom than in any other European country but it's also quite clear that the diesel discussion, additional taxes on the latest technology have created a reaction in the consumer base".

JLR's global sales grew by 7 per cent in 2017 with the sale of 621,109 cars in a year the company branded as its "best ever" and the seventh consecutive year of successive growth.

"So in our home market, it's important that the economy can grow and that we have free opportunity to sell our cars".

Jaguar sales were down 26% to the end of March while Land Rover demand dropped 20% during the same period.

Julian Knight, MP for Solihull, said: "The news that has come to us is disturbing, and I am in regular contact with JLR on this issue".

The auto manufacturing giant, which is headquartered in Coventry, said it would be "reviewing its production schedules" in a move that could reportedly impact 1,000 temporary workers.

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