JLR hit by lay-offs; to cut 2,000 jobs globally
What's the story
Jaguar Land Rover (JLR) is planning to reduce its global workforce by 2,000 in the next financial year. The staff is being briefed on the job cuts. The development comes just two days after the automaker laid bare its new Reimagine strategy under which Jaguar will become an all-electric brand from 2025. Here are more details.
Quote
'The review of the company's organization is underway'
"The full review of the Jaguar Land Rover organization is already underway. We anticipate a net reduction of around 2,000 people from our global salaried workforce in the next financial year," JLR said in a statement.
Mounting trouble
Tata Motors' losses might have hastened lay-off decision
In January, JLR owner Tata Motors was concerned over semiconductor shortages and Brexit-related supply disruptions. However, production was not hit. The company also posted three straight quarters of losses due to the impact of COVID-19 on sales, rising expenses, and weak demand. These factors might have led to the lay-off decision. However, it turned a profit in the third quarter ending December 2021.
Information
Manufacturing staff working by the hour will be unaffected
JLR has factories in India, the West Midlands area of England, Slovakia, China, and Brazil. The salaried employees there are being briefed on the job losses. However, manufacturing staff paid by the hour will not be affected.
Future plan
£2.5 billion will be spent annually to achieve carbon neutrality
The company has formulated a 'Reimagine' plan, as part of which, it will invest £2.5 billion ($3.5 billion) annually so that its operations and supply chain can become carbon neutral by 2039. This plan will require a substantial reduction of its non-manufacturing operations. Jaguar Land Rover has almost 40,000 employees worldwide, according to the company's 2019-20 annual report.