Jaguar Land Rover is reviewing its production schedule and is reportedly looking to slash 1,000 jobs as it looks to steer itself within difficult conditions that are prevalent for carmakers.
The automobile manufacturer is also looking to reduce production at two of its factories as demand for diesel cars slumps in the face of higher taxes and a regulatory crackdown.
The U.K.’s largest automotive manufacturer’s local retail sales were down by 12.8% in the financial year ended 31 March 2018. Sales were down in Europe by 5.3%.
Felix Brautigam Jaguar Land Rover Chief Commercial Officer said, “Weaker market conditions in the U.K. and Europe, driven by lack of consumer confidence and lower demand for diesels, are impacting our growth.”
“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. We are, however, continuing to recruit large numbers of highly skilled engineers, graduates and apprentices as we over-proportionally invest in new products and technologies, including the latest plug-in hybrid options for the Range Rover and Range Rover Sport that are now being delivered to customers from Solihull.
“We also remain committed to our U.K. plants in which we have invested more than £4 billion since 2010 to future proof manufacturing technologies to deliver new models.”
The company employs more than 43,000 people globally and support around 240,000 more through dealerships, suppliers and local businesses.
The company’s manufacturing arm is centered in the U.K., with additional plants in China, Brazil, Austria and Slovakia.
In 2017 Jaguar Land Rover sold 621,109 vehicles in 130 countries, with more than 80% of the vehicles being sold abroad.
Also, the company plans to spend more than £4 billion ($5.72 billion) in the coming year on new product creation and capital expenditure.The company is aiming to make all new Jaguar Land Rover vehicles electrified by 2020.