Jaguar Land Rover is to axe 450 jobs due to what a statement from the company has called a “severe” reduction in demand for new cars. On top of the cuts it was also revealed that managers from the group will not receive any bonuses in 2009.
The UK-based carmaker, which is owned by the Indian group Tata, said the job losses will be spread between management roles and salaried agency staff.
In all 300 management roles will go and 150 agency staff. Furthermore, any remaining management pay increases have been deferred to the beginning of October this year at the earliest.
Jaguar Land Rover’s CEO David Smith said: “It is only right and proper that our response to the unavoidable impact of the credit crunch and a severe reduction in demand includes actions across all grades and functions in the company. We don’t expect sales conditions to return to normal levels for some time.”
Jaguar Land Rover was bought by Tata from Ford for GBP1.7bn last year.
In December last year, it was reported that Tata had agreed to inject “10s of millions” of pounds into Jaguar Land Rover to prevent an immediate cash flow crisis while the UK government continued to consider the case for a taxpayer-funded bailout.
Last November, the firm sacked 850 agency IT and engineering staff.