Jaguar Land Rover announced that by the start of next year there will be 5,000 job cuts as part of a major cost-cutting program. Job losses will be part of a £ 2.5 Billion recovery plan that the UK company will set up in January. JLR was hit by falling demand for sedans and diesel engines, reported a loss of £90 Million in the third quarter of 2018. The company said the decline in sales in China was the main reason for the loss.
While Ralf Speth, CEO of Jaguar Land Rover declared the 18-month cost-cutting plan when financial results were announced back in October. However, no specific details were the move. In the UK, sources told the Financial Times that job losses will include several in thousand would mean, according to one financial analyst covering JLR and shows that the company plans for 5,000 jobs.
In a statement, the company said, “Jaguar Land Rover notes media speculation about the potential impact of its current Charge and Accelerate transformation programs. As announced during the publication of our outcomes for the Q2, these programs aim to reduce the cost of the company by £ 2.5 Billion in the form of profit improvements, cost, and cash. JLR, which currently employs around 40,000 people in the UK, has previously laid off 1,000 employees at its Solihull plant which has been closed recently for two weeks and at its Castle Bromwich plant is following a three-day week operations plan, which makes its passenger cars.
The reports emphasize the indecision JLR faces and, in addition to the cost-cutting plan, the company is also in efforts to settle on its long-term future. It has been already indicated that this could be the essential move to make Jaguar a brand solely for electric vehicles.