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Jaguar Land Rover set to axe thousands of jobs

Jaguar Land Rover is expected to announce thousands of job cuts in the new year as part of a £2.5 billion savings plan to ward off the threat from Brexit, falling sales in China and a drop in demand for diesel cars.

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Jaguar Land Rover has sent hundreds of its Wolverhampton workers home in the run-up to Christmas

The UK's biggest car maker, which manufacturers its engines at the i54 site in Wolverhampton, is believed to be preparing to implement turnaround plans that could result in the loss of up to 5,000 jobs.

The company employs 40,000 people in the UK and has already cut 1,000 temporary contract workers at its plant in Solihull, which builds Range Rovers and the Land Rover Discovery SUV.

It has also reduced working hours for some workers, including at its Wolverhampton factory in the run-up to Christmas.

Plans for further job cuts come after the firm, which is owned by the Indian Tata Motors group and is a major employer in the West Midlands, made a £90 million loss in the three months to September, hit by falling sales in China and Europe.

In an attempt to turn around its ailing fortunes the company announced plans in October to save £2.5bn, including £1bn of cost cuts, but did not say how many jobs would be lost.

According to reports, several people close to the carmaker said JLR will outline in January the short-term element of its plan, including the loss of up to 5,000 jobs.

Tata Motors has appointed Boston Consulting Group to put together the turnaround plan.

The carmaker said: “Jaguar Land Rover notes media speculation about the potential impact of its ongoing charge and accelerate transformation programmes.

“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 plan to revive the fortunes of the luxury carmaker includes a reduction in annual investment from £4.5bn to £4bn this year and next, and a reduction in the stock of finished cars it holds and its working capital by £500 million.

It will also cut £1bn in costs. and has already introduced a freeze on recruitment and all non-essential travel, as it battles falling demand.

Emma Reynolds, MP for Wolverhampton North East, said: “Reports that Jaguar Land Rover is planning to make 5,000 staff redundant in the new year at extremely worrying. Last month the company announced that at the Engine Manufacturing Centre on the I54 on the outskirts Wolverhampton would be temporarily moving 500 staff on to reduced hours. There have been 1,000 job losses of agency staff at Solihull.

“Staff at JLR will want transparency over their futures, and the company must be open with their employees and the trade union Unite over what their plans are.

“When I spoke to Jaguar Land Rover about the Wolverhampton factory moving to reduced hours in the run-up to Christmas, I was assured that this was temporary and that jobs were not at risk. I will be seeking further reassurances over these plans, and what impact, if any, there will have on staff in Wolverhampton.”

The union Unite said it was not aware of any further job losses to those already announced and planned for early in the new year at JLR.

It said it will continue to press JLR for assurances over the jobs and skills of its members.