Jaguar Land Rover is planning to cut up to 5000 jobs in 2019 as part of the £2.5 billion turnaround plan of the company.
The car manufacturer posted a loss amounting to £90 million in the third quarter of 2018. It has been affected by the declining demand for diesel cars and the costs that are associated with the upcoming Brexit. The firm said that sharply declining sales in China were considered as the key reason for the loss.
The Financial Times reported that the firm is set to outline part of its restructuring plan at the start of next year and is anticipated to axe thousands of jobs.
Last October, the group launched its “Change and Accelerate” transformation programme which aims to deliver approximately £2.5 billion in cost savings by 2020.
While Ralf Speth, the boss of Jaguar Land Rover, announced the 18-month cost-cutting plan when those financial results were announced last October, no specifics were further disclosed on what they involved.
A spokesperson for the firm stated: “Jaguar Land Rover notes media speculation about the potential impact of its ongoing Charge and Accelerate transformation programmes.”
He added: “As announced when we published our second quarter results, these programmes aim to deliver £2.5nn of cost, cash and profit improvements over the next two years. Jaguar Land Rover does not comment on rumours concerning any part of these plans.”
JLR currently employs approximately 40,000 people in the United Kingdom. It has already axed 1000 job at its Solihull plant – which was recently shut for around two weeks – and is now operating a three-day week at its facility in Castle Bromwich which makes its saloon car range. It has also reduced the working hours at some of its other sites.
The reports emphasise the uncertainty that is facied by JLR. Also, beyond the cost-cutting plan, the firm is also trying to determine its long-term future. Previously, Autocar has reported that this could include the radical step of turning Jaguar into an EV-only brand.