Type
Internal restructuring
Country
United Kingdom
Region
Location of affected unit(s)
Castle Bromwich and Sollihull in West Midlands; Halewoed in Merseyside near Liverpool
Sector
Manufacturing
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.10 - Manufacture of motor vehicles

1,100 jobs
Number of planned job losses
Job loss
Announcement Date
15 June 2020
Employment effect (start)
15 June 2020
Foreseen end date
30 September 2020

Description

British vehicle manufacturer, Jaguar Land Rover (JLR) will reduce the number of contract-agency workers employed in its manufacturing plants in the coming months due to a drop in retail sales of almost one third at the beginning of 2020 due to the COVID-19 pandemic.

While the company has not confirmed the exact number of job cuts, around 1,100 temporary roles are thought to be at risk.

A spokesperson from Unite, the trade union, said that the agency workers are employed by Manpower and that they predominantly work on JLR’s car production line.

Head-quartered in Coventry in the West Midlands of England, JLR is owned by Indian multinational Tata Motors. The company has plants across the United Kingdom, including in Castle Bromwich, Solihull and Halewood.

Unite said that around 400 jobs would be lost from the Solihull plant with the remainder of job losses spread across other sites in the West Midlands and Merseyside.

The job cuts are in addition to other measures that have already been taken by the company, including previous restructuring in February 2020 (see earlier factsheet) as well as furloughing of half of its workforce under the UK Government’s Coronavirus Job Retention Scheme after all production was suspended in March. In furloughing half of its workforce, the company was taking advantage of the UK Government’s Coronavirus Job Retention Scheme, which subsidises 80% of a worker’s salary up to a maximum of £2,500 per month (€2,763 approx.). It has since re-opened its manufacturing plants in Solihull, Halewood, and overseas. The executive leadership team are also reported to have defered their salaries for three months and taken salary reductions of between 10 and 30 percent.


Sources

Citation

Eurofound (2020), Jaguar Land Rover, Internal restructuring in United Kingdom, factsheet number 101260, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/101260.