Jaguar Land Rover to cut 5,000 jobs over Brexit uncertainty and falling diesel vehicle sales

Jaguar Land Rover to cut 5,000 jobs over Brexit uncertainty and falling diesel sales

Jaguar Land Rover factory in Solihull, England.

Monday, December 17, 2018

Jaguar Land Rover is set to cut thousands of jobs in the next year as part of a £2.5bn plan to cut costs, as it struggles with failing sales in diesel cars and Brexit uncertainty.

Up to 5,000 staff could be made redundant, which is the equivalent to one in eight of Jaguar Land Rover’s workforce, the Financial Times reported.

The company is struggling after a 30% drop in diesel vehicle sales, as they have been linked to high levels of air pollution.

Earlier this year, 1,000 agency staff jobs at Jaguar Land Rover’s Solihull plant were cut.


'Pay the salaries' 

Labour MP Jess Phillips, who is the member of parliament for Birmingham Yardley, drew attention to the job cuts calling out Boris Johnson, who was reported to say that he would take responsibility if people lose jobs under a no-deal Brexit.

Writing on Twitter on Sunday, Phillips said: “Dear Boris Johnson, you said you would take personal responsibility for this. Can I ask how your responsibility will help my constituents, like a responsible parent, how will you remedy this?”

The Labour MP had previously said that she would expect the former Foreign Secretary to “pay the salaries of every single one of my constituents who lose their jobs”.

A JLR spokesman said: “Jaguar Land Rover notes media speculation about the potential impact of its ongoing charge and accelerate transformation programmes.

“As announced when we published our second quarter results, these programmes aim to deliver £2.5bn 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.”

Plans for further job cuts come after the company - owned by the Indian conglomerate Tata - made a £90m loss in the three months to September 2018.