After posting a £90 million loss, employees at Jaguar Land Rover are facing potential job cuts.
Britain’s biggest car manufacturer now plans to reduce £2.5 billion worth of costs.
No decisions about employment have been made yet.
Jaguar Land Rover slipped into the red following falling sales in China and Europe. Sales fell 13.2% and reported revenues of £5.6 billion, down 10.9% year-on-year.
Ralf Speth, Jaguar’s Land Rover Chief Executive, said on Wednesday:
“In the latest quarterly period, we continued to see more challenging market conditions. Our results were undermined by slowing demand in China, along with continued uncertainty in Europe over diesel, Brexit and the WLTP changeover.”
“Given these challenges, Jaguar Land Rover has launched far-reaching programmes to deliver cost and cashflow improvements. Together with our ongoing product offensive and calibrated investment plans, these efforts will lay the foundations for long-term sustainable, profitable growth.”
Unions have been briefed on Jaguar Land Rover’s cost-cutting announcement.
“Unite will be pressing JLR for further detail on its plans in addition to commitments on future models to be made here in the UK to ensure the carmaker remains a powerhouse of UK manufacturing and source for decent, well-paid jobs,” said Des Quinn, national officer at the Unite union.
The car manufacturer announced 1,000 job losses in April after the group reported a slump in sales due to “headwinds” from Brexit and diesel uncertainty.
The Castle Bromwich plant will also be moving to a three-day week.
In September, Jaguar Land Rover warned that “tens of thousands” of jobs may be at risk if the government fails to reach a Brexit deal.
The group has begun a freeze on recruitment and non-essential travel.