Britain’s biggest automaker Jaguar Land Rover will slash around 1,000 jobs and production at two of its factories in the region because of fall in sales caused by uncertainty around Brexit and doubts over diesel policy, a source informed Reuters.
Output will be slashed at its central English Solihull and Castle Bromwich plants, affecting an estimated of 1,000 agency workers, the source stated.
A spokesman at Jaguar Land Rover (JLR) refused to comment on the number of jobs that would be lost but the company stated it would be making changes to its output plans.
“In light of the continuing headwinds impacting the car industry, we are making some adjustments to our production schedules and the level of agency staff,” the company stated.
It is not renewing the contracts of the amount of agency staff at the Solihull site and would be telling staff on Monday about its plans for the 2018-19 financial year.
In January, the firm stated it would temporarily decrease production at its other British plant of Halewood later this year in reaction to decreasing demand because of Brexit and tax hikes on diesel cars but did not describe any job losses.
Jaguar sales dropped 26 percent so far this year while Land Rover demand fell 20 percent in its home market as buyers shun diesel, concerned about planned tax rises and potential bans and restrictions in several countries.
“It’s been obvious to everyone that sales have been dropping,” the source stated.
British new car registrations have been dropping for a year which the car industry body has partly blamed on declining consumer confidence following the Brexit vote, after record demand in 2015 and 2016.