Jaguar and Ford to cut thou­sands of jobs

The Irish Times - Business - - BUSINESS NEWS -

Jaguar Land Rover plans to elim­i­nate 4,500 jobs world­wide as the UK’s big­gest car-maker re­sponds to a sales slow­down caused by Brexit, flag­ging de­mand for diesel-pow­ered ve­hi­cles and a down­turn in China.

The lay­offs, rep­re­sent­ing roughly 10 per cent the com­pany’s work­force, come on top of the 1,500 peo­ple who left in 2018, the com­pany said yes­ter­day in a state­ment.

The move is part of a £2.5 bil­lion (€2.7 bil­lion) push an­nounced last year to re­duce costs and boost cash flow through 2020.

“We are tak­ing de­ci­sive ac­tion to help de­liver long-term growth in the face of mul­ti­ple geopo­lit­i­cal and reg­u­la­tory dis­rup­tions as well as tech­nol­ogy chal­lenges fac­ing the au­to­mo­tive in­dus­try,” chief ex­ec­u­tive Ralf Speth said in the state­ment.

The mea­sures were aimed at “safe­guard­ing our fu­ture”.

The cuts at Jaguar come on the same day that Ford said it would cut thou­sands of jobs in Europe as it tries to turn around a re­gion that has been a drag on earn­ings for years.

Fi­nan­cial year

Jaguar, owned by In­dia’s Tata Mo­tors , em­ployed more than 43,000 peo­ple dur­ing the 2018 fi­nan­cial year.

In June the com­pany said it would move pro­duc­tion of the Dis­cov­ery sport util­ity ve­hi­cle (SUV) to Slo­vakia from Birm­ing­ham to make room for fu­ture elec­tric cars. The com­pany has said that move will cost 1,200 jobs.– Bloomberg

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