Britain's biggest carmaker cuts 1,000 jobs
Jaguar Land Rover - which is owned by India's Tata Motors (TTM) - employs about 40,000 workers in the UK who produce over 500,000 vehicles a year.
The company is cutting the jobs at a factory in Birmingham that manufactures the Jaguar F-Pace along with the Land Rover Discovery and various Range Rover models.
It said that a sharp decline in British car sales caused by a loss of consumer confidence contributed to the decision. Jaguar Land Rover's UK sales in March were down 26% compared to the same month last year. Car sales across the industry were down nearly 16%.
Brits have cut back on big-ticket purchases as their wages have been squeezed by a rise in inflation, a side effect of the Brexit referendum in 2016. A sharp drop in the pound following the vote made imported products more expensive and ultimately caused inflation to spike above 3%.
Jaguar Land Rover pointed out that "the huge drop in demand in diesels" led to its decision not to renew the contracts of 1,000 workers. ■