LONDON, U.K. - The largest auto manufacturer in the United Kingdom, Jaguar Land Rover has blamed "continuing headwinds" while announcing its decision to cut 1000 contract jobs.
The carmaker, which is owned by India's Tata Motors, has blamed "continuing headwinds" affecting the vehicle industry and a company spokesperson said that the vehicle firm would be making "some adjustments" to its production schedules and the levels of agency staff.
The company currently employs 40,000 people in the U.K. and is believed to be cutting 1,000 jobs.
A spokesperson said, “It's unfortunate that in the United Kingdom demand is not there anymore, and the United Kingdom is our home market. We are however continuing to recruit large numbers of highly skilled engineers, graduates and apprentices as we are over-proportionally invested in new products and technologies.”
In 2017, the company’s new vehicle sales fell 5.7 percent in the U.K., the first decline in registrations for six years.
The spokesperson explained, "We also remain committed to our United Kingdom plants in which we have invested more than 4 billion pounds since 2010 to future-proof manufacturing technologies to deliver new models.”
The announcement is now set to fuel debate on the impact of Brexit on the industry.
Earlier, the company pointed to the uncertainty around leaving the European Union, alongside the challenges facing diesel, when announcing the "temporary adjustments" to its production schedules at Halewood in January.
In 2018, sales of the Jaguar brand are reported to be down 26 percent in 2018 and Land Rover is set to suffer a 20 percent drop.
According to sources, 1,000 roles would be slashed as part of the move.
In January this year, the company said, ”Ongoing uncertainty surrounding Brexit is being felt by customers at home and in Europe", the company said in January. The cars would have evaded tax amounting to more than three million Kenya shillings if they had been cleared as mattresses. JLR appears to be especially exposed as over 90 percent of sales are diesel.”