Tata’s Jaguar Land Rover cuts 4,500 jobs worldwide on weak China demand
The layoffs, representing roughly 10 percent the company’s workforce, come on top of the 1,500 people who left in 2018, the company.business Updated: Jan 10, 2019 19:55 IST
Buffeted by weak demand in China and other uncertainties in the motor industry, the Tata-owned Jaguar Land Rover (JLR) on Thursday confirmed shedding 4,500 jobs in addition to the 1,500 jobs it terminated in 2018.
The announcement raised further Brexit-related concerns by MPs and others in constituencies where JLR operates in the UK. Motor companies are among several who have deplored lack of certainty on the way forward on Brexit scheduled for March 29.
JLR said its next phase of ‘Charge and Accelerate’ transformation programme aims to deliver £2.5 billion in cost reductions and cashflow improvements over 18 months as well as long-term strategic operating efficiencies.
The next phase of the programme is expected to begin with a voluntary redundancy programme in the UK with a view to creating a leaner, more resilient organisation with a flatter management structure.
Ralf Speth, CEO of JLR, said: “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”.
“The ‘Charge and Accelerate’ programme combines efficiency measures with targeted investment, safeguarding our future and ensuring that we maximise the opportunities created by growing demand for Autonomous, Connected, Electric and Shared technologies”.
The company said its ‘Charge and Accelerate’ programme has identified over £1 billion of improvements, with more than £500 million already realised in 2018. The savings and improvements achieved will enable Jaguar Land Rover to fund vital investments into technology to safeguard its future, it added.
Speth said: “The next chapter in the story of the Jaguar and Land Rover brands will be the most exciting - and challenging - in our history. Revealing the iconic Defender, investing in cleaner, smarter, more desirable cars and electrifying our facilities to manufacture a future range of British-built electric vehicles will all form part of building a globally competitive and flourishing company”.
First Published: Jan 10, 2019 19:19 IST