Owing to uncertainty over Brexit and the future of diesel vehicles, Tata-owned Jaguar Land Rover is experiencing a slump in sales and hence, announced the job cut of approximately 1,000 employees.
Britain’s biggest carmaker has confirmed that the sales have dropped 26 percent and the sale of Land Rover has dropped 20 percent this year. Due to this drop in sales, the company has decided to stop production at two unit and not renew the contracts of 1,000 temporary workers at those two factories. Meanwhile, 362 permanent staff will be transferred from another West Midlands site, at Castle Bromwich, to Solihull.
In a statement, the company referred Brexit and diesel taxes as “headwinds.” The company said that in the light of continuing headwinds impacting the car industry, they are making some adjustments to their production schedules and the level of agency staff.
However, the statement also mentioned saying that since the company is investing a lot in new products and technologies, it will continue to recruit a large number of highly skilled engineers, graduates, and apprentices.
Earlier, the UK car industry, which employs about 169,000 people, has warned that thousands of UK jobs are at risk because of the tax increase and a backlash against diesel vehicles. Sales of diesel-powered vehicles were reported to drop by 17% in 2017 but still represented almost 38% of car sales.
Brexit has added to consumer concerns, prompting potential customers to delay new car purchases. Additionally, the UK government was quoted in media saying it will ban sales of new diesel and petrol cars by 2040 to improve air quality and public health.