Carmaker Jaguar, an iconic British brand now owned by Indian group Tata Motors, said on Wednesday it would cut 450 jobs in a bid to reduce costs.
The company added that managers would not receive any bonuses this year, with salary increases deferred until October, blaming a "severe reduction" in demand for new cars.
Tata Motors completed its 2.3 billion dollar (1.7 billion euro) acquisition of Jaguar and Land Rover from ailing US carmaker Ford in June.
British Business Secretary Lord Peter Mandelson said last month that the government had held talks with Jaguar and Land Rover over a possible bailout but stressed that no decisions had yet been reached.
The carmaking industry in Britain has been hammered by the international economic downturn, with Japanese car giant Nissan saying last week it would cut 1,200 jobs here due to a sales slump.
New car sales in Britain dropped 11 percent in 2008, according to figures published by the Society of Motor Manufacturers and Traders (SMMT). In December, new car sales dropped 21 percent compared to the same month in 2007.
Though Jaguar's sales in 2008 were 8.7 percent higher, sales in December dropped 9.4 percent compared to the same month in 2007.