Jaguar Land Rover (JLR) has announced plans to cut 2,000 non-factory jobs – days after it committed to its UK plants and revealed a huge investment in a zero-emission future.
The company said it had begun on Wednesday to inform colleagues on the findings of an organisational review that is designed to slash costs and create a more “agile” business.
A statement confirmed its hourly-paid manufacturing workers would not be affected by the cuts which, the company said, would be completed next year as its transition to an all-electric fleet by 2030 gathers pace.
JLR said: “This week’s announcement outlines our future strategy not only including plans for our brands and vehicles, but also how we will reimagine our entire business.
“This will be a journey of permanent adaptation, but as we start to become an agile organisation, it’s imperative that we make every possible efficiency right from the start, including finding the right baseline cost for our workforce.
“With a renewed imperative to prioritise value creation through quality and profit-over-volume approach, we will create a flatter structure designed to empower employees to create and deliver at speed and with a clear purpose.”
The company has been slashing roles at pace over the past few years – cutting 1,000 jobs in 2018 and 4,500 positions in January 2019 as it revved up plans to return to profitability following a run of weak demand for cars globally.
In the run-up to, and during the COVID-19 crisis last year, it revealed 1,600 jobs were to be lost.
JLR signalled it was too soon to know how many roles would be affected in its home UK market, but out of 37,000 global employees, only 7,000 of them are abroad.
Like its rivals, the Indian-owned firm is investing heavily in new technologies as governments around the world demand cuts in emissions to tackle climate change.
Ford revealed its own plans for the power trains in its European models earlier on Wednesday.
Sales of electric and hybrid models are gaining traction in the UK but they remain dominated by petrol and diesel.
Vauxhall told Sky News last year that the cost of electric models and concerns over range meant manufacturers had a tough sell on their hands to persuade drivers to switch.
The industry has called for incentives from the government at a time when sales are depressed because of coronavirus disruption to household incomes and travel plans.
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