Jaguar Land Rover to cut 450 jobs in UK

JaguarStruggling car manufacturer Jaguar Land Rover is axing 450 jobs in the UK. The cuts will include 300 management positions and 150 salaried agency staff.

The company was bought by Indian business Tata from Ford for £1.7bn in February last year, but has seen falling car sales over the past year.

Chief executive David Smith says he does not expect sales to return to normal levels “for some time”.

“The company needs to become more efficient so that we can invest in new models and technology as soon as the market conditions improve,” he says.

“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.”

The company says managers will not receive any bonuses in 2009 and management pay increases have been deferred until October 1.

Jaguar Land Rover employs about 15,000 people at plants in Coventry, Solihull, Castle Bromwich and Halewood. The car company says it has now begun consulting with unions on the proposed redundancy programme.

Last November, the carmaker axed 850 agency, IT and engineering staff and said it was in talks with the government over a possible bail out.

Its parent company Tata has also said it will inject tens of millions of pounds into the company, in order to help it survive the tough economic conditions.

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