Jaguar Land Rover To Cut 1,100 Jobs As Pandemic Hits With $500 Million Loss

Jaguar Land Rover introduced plans to chop 1,100 jobs in a bid to deal with the monetary hit from the Covid-19 pandemic.

The British carmaker reported a £422 million ($531 million) pre-tax loss within the yr to March, along with a £500 million ($629 million) pre-tax loss in final yr’s ultimate quarter.

Jaguar Land Rover will lower 1,100 non permanent jobs within the coming months as they’re elevating their cost-cutting goal for subsequent yr by £1 billion to £5 billion ($6.three billion). The brand new cuts come on prime of the 5,000 jobs axed by the corporate final yr.

Learn Extra: Jaguar Land Rover Seeking Over $1 Billion In Aid From UK Government

The newest job cuts are “one other devastating blow for our auto sector and the communities that depend on them for jobs”, mentioned Unite Union, including that 400 positions could be misplaced at JLR’s greatest manufacturing facility, at Solihull, and the remainder will unfold throughout the remainder of their websites.

The corporate mentioned that they’ve acquired simply 22,000 orders for the new Land Rover Defender, a mannequin JLR hopes to promote in giant volumes. That determine is disappointing based on analysts who spoke to Financial Times, including that it’s solely barely larger than the variety of previous Defenders bought of their ultimate yr of manufacturing, again in 2016.

The automaker has began re-opening factories in the UK and Europe, however lots of them are working at low capability. JLR’s Fortress Bromwich plant stays closed. “The corporate plans to renew manufacturing steadily to satisfy recovering demand,” JLR mentioned in an announcement, including that Solihull and Halewood are open, as does their Slovakian manufacturing facility.

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