Marketing roles bear brunt of Jaguar Land Rover mass layoffs

Staff gather outside the Jaguar Land Rover site in Halewood Knowsley Merseyside

The job losses were widely predicted, after the company revealed past year it had to make significant cuts to stay in business.

Ford signalled there would be "significant" cuts among its 50,000-strong European workforce under plans to make it more competitive and make its business more sustainable.

The report said JLR had been hit by a slump in Chinese sales, a downturn in diesel vehicle sales and fears about Britain's competitiveness after Brexit.

The job cuts are a part of the GBP 2.5 billion cost reduction and cashflow improvement efforts that the company is now undertaking, for over 18 months period.

The company has opened a £1bn plant to Slovakia where it now employs 1,500 people.

Jaguar Land Rover has confirmed it will cut 4500 jobs as it wrestles with a flawless storm of weakening demand for its premium cars, especially in China, the uncertainties of Brexit and the rising costs of developing the next generation of cars for the electric age.

The firm reported a £90m pre-tax loss in the three months to 30 September, compared with a £385m profit in the same period in 2017.

"The economic slowdown in China along with ongoing trade tensions is continuing to influence consumer confidence", said JLR Chief Commercial Officer Felix Brautigam.

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

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"In light of the continuing headwinds impacting the auto industry, we are making some temporary adjustments to our production schedules at Castle Bromwich", the company said.

Ford is now in talks with Volkswagen Group over a potential alliance, which could boost its strategic cost-cutting and boost its efforts to deliver an alternatively-fulled vehicle (AFV) drivetrain for each of its auto models.

It's a tough day for the European auto industry.

"Given the difficulties that they're going through.to add further costs and further disruption from a no-deal Brexit, it's clear why they've been so clear that this would be against their interests", said business minister Greg Clark.

Some 5,000 jobs will be cut, mainly in management, marketing and administrative roles, the BBC reported.

Unite national officer Des Quinn said: "Ford's workforce in the United Kingdom is world class in making and developing engines and gearboxes that are shipped all over the globe".

"Britain's auto workers have been caught in the crosshairs of the Government's botched handling of Brexit, mounting economic uncertainty and ministers' demonisation of diesel, which along with the threat of a no-deal Brexit, is damaging consumer confidence".

"Jaguar Land Rover is expanding a business-wide organisation review aimed at reducing the size of its global workforce by around 4,500 people".

Beyond the £2.5 billion now being sought, rumours abound that Jaguar could be reincarnated as an all-electric brand in the not-too-distant future, better positioning it to deliver on future customer demand and lessening the burden it now places on the far-healthier Land Rover. Its new Slovakian factory has a capacity of 150,000.

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