Jaguar Land Rover To Slash Up To 5000 Jobs Next Year, Report Says

Jaguar Land Rover will slash thousands of jobs next year as the company introduces a $3.15 billion cost savings plan, The Financial Times reports.

The British company has been hurt in recent months by sliding sales in China, falling demand for diesel vehicles and various costs associated with Brexit. These factors prompted Jaguar Land Rover to announce a $3.15 billion turnaround plan that includes £1 billion ($1.26 billion) in cost reductions over the coming 18 months.

Although the company hasn’t announced precisely how many jobs it will cut, people close to the company expect the job losses to run up to 5000. These cuts will follow the 1000 slashed recently at its Solihull plant in the UK.

“It’s do or die at the moment,” Robin Zhu, analyst from Bernstein in Hong Kong said.

“JLR has been seriously mismanaged in recent years, with cost runaways, products disappointing in the market, and hedging issues costing it billions.

“Meanwhile there’s arguably been a lack of accountability in the management ranks.”

Tata has drawn up two plans to help the company. The first, Project Charge, is a three-year plan focuses on cost savings within the first 18 months. The second plan, the longer-term Project Accelerate, is expected to reduce Jaguar Land Rover’s range of models.

“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,” the British marque said of Project Charge and Project Accelerate.

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  • rover10

    Some of JLR’s problems are self inflicted. Both companies have concentrated on premium products without underwriting this dependence, by offering lower end vehicles. The Jaguar XE should have had a smaller stablemate, and Land Rover Sport a true Freelander size buddy. The problem of being successful by offering only large, premium vehicles, is inadequate protection from World economic downturns. Most premium German manufactures produce a much broader span of size and pricing, of which, more are about to enter the ‘Fiesta’ segment. When times are good and profits are singing, little voices of caution are often unheard.

    • Thunderbolt

      on top of that, the quality sucks.

    • Stephen G

      “The problem of being successful by offering only large, premium vehicles, is inadequate protection from World economic downturns” Uhm, sorry but Land Rover buyers don’t know what an “economic downturn” is. They continue to buy regardless of the working class loosing their homes or not. A-class and 1 Series buyers are going to keep their car together with duct tape and bailing wire if they have to. The money is in premium transportation without doubt.

      • rover10

        Your approach is exactly why JLR are having to lay off people. The so called head in the clouds buyers you talk of, are mostly overseas buyers. The product is right but the World is worried about the future strategy in the money markets? Trade tariffs have shaken all significant automobile markets, and even China has stopped buying in such large numbers. It’s at times like these that having a strong home market pays off, but that might require smaller less expensive vehicles to meet a changing set of circumstances.I know a number of JLR owners who do care about prices, and react very swiftly when storm clouds appear, that’s why they are wealthy,but wise.

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