RE: Jaguar Land Rover to Cut 450 Jobs
Wednesday 14th January 2009
Tough times at Jag Land RoverJaguar Land Rover is to shed 450 jobs, it has been reported. The cuts will be made up of 300 managers and 150 salaried agency staff.
Jaguar Land Rover to Cut 450 Jobs
Credit crunch continues to bite at Jaguar Land Rover
Tough times at Jag Land Rover
Jaguar has just unveiled two new models – the XKR and the XFR – at the Detroit motor show. Indian firm Tata bought Jaguar Land Rover from Ford for £1.7bn last year and said the cuts were due to the global economic crisis.
Chief Executive David Smith said the company needs to be more efficient and added that he did not expect sales to return to normal levels ‘for some time’.
‘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,’ he said.
‘It is critical that Jaguar Land Rover becomes a more efficient and dynamic organisation to face up to the challenges that we will meet in the years ahead.’
Consultation with unions has now begun surrounding a proposed redundancy programme. Tata has claimed that it will inject tens of millions of pounds into Jaguar Land Rover.
Discussion
People will probably criticise TATA for not pouring millions into J/LR but if the demand isn't there then streamlining the current setup is probably, initially, the sensible option for long term survival. Very sad for all involved though.
Edited by jgt1972 on Wednesday 14th January 11:50
Edited by jgt1972 on Wednesday 14th January 11:51
I work for TATA Steel UK (since they took over Corus Steels). Aparently JLR has made profits and good returns up to Oct 2008 under its new ownership. TATA had made few if any changes to JLR at that time so it shows that JLR can perform well now that it has a newer product line-up and better products made by better manuafacturing processes. If the market demand was still there now then they would still be making money , etc. Problem is the market has collapsed and because they can't just immediately match production to sales demand, you get a big stock build up which then takes even longer to shift - so like so many car firms the world over (Toyota, Honda, Nissan, BMW , Merc , VW , Renault for sure) they are temporarily shedding agency workers, cutting out whole shifts (e.g no more nights production) and thus shift staff, and reducing supervisory / management staff accordingly. Like all businesses they need to conserve cash because the state / tax payer owned banks like LLoyds TSB / HBOS won't lend big businesses cash at any rate (not really what Gordon Brown expected / want in return for giving away so much tax payers monies but there you go).
Most big manufacturing businesses are in the same boat - madly working to Weather the Storm by conserving cash, using extended down-time to maintain plant and train staff to be more flexible, restucturing, cut staff levels to a realistic minimum, and wait for demand to pick up. It is a scary world here in UK manufacturing, and much the same in rest of EU /USA by all accounts : you turn up to work each morning wondering whether the factory gates will be open / or locked ......
Most big manufacturing businesses are in the same boat - madly working to Weather the Storm by conserving cash, using extended down-time to maintain plant and train staff to be more flexible, restucturing, cut staff levels to a realistic minimum, and wait for demand to pick up. It is a scary world here in UK manufacturing, and much the same in rest of EU /USA by all accounts : you turn up to work each morning wondering whether the factory gates will be open / or locked ......
It is never good to see people loosing their jobs whatever the industry - probably of more concern in the long term however is the survival of the supply chain that supports these major companies. If the supply chain vanishes then when they do get around to ramping production back up there will be an easy excuse to move production abroad.
If anybody reading this is looking for a job then have a look at nuclear and rail - these two sectors have a demand for skills at the moment, in particular nuclear. I used to work in rail and moved to nuclear three years ago, there are significant investment plans for new nuclear stations over the next 15 to 20 years and these things take a long time to build and commission - don't worry about the whole glowing green thing - these stations won't see any fuel for at least ten years!
Mr Mac
If anybody reading this is looking for a job then have a look at nuclear and rail - these two sectors have a demand for skills at the moment, in particular nuclear. I used to work in rail and moved to nuclear three years ago, there are significant investment plans for new nuclear stations over the next 15 to 20 years and these things take a long time to build and commission - don't worry about the whole glowing green thing - these stations won't see any fuel for at least ten years!
Mr Mac
filski666 said:
450 out of the total employed by JLR isn't much. Here at SAIC/MG we had people laid off before christmas, another 10% kicked out last friday, and allegedly another 20% will go before end of march - that never makes the news though.
Sorry to hear all this bad news. Why are people laid off at SAIC/MG and how many are still employed at Longbridge ? "The cuts will be made up of 300 managers..."
A recession always gives a company a good excuse to re-structure themselves more efficiently. In the boom years, most companies end up with too many layers where you have managers managing managers. If only the civil services did the same thing
A recession always gives a company a good excuse to re-structure themselves more efficiently. In the boom years, most companies end up with too many layers where you have managers managing managers. If only the civil services did the same thing
monthefish said:
chunkymonkey71 said:
Sad news, but how cool is that picture???
Makes me want a Landy...
I think that's the limited edition SVX that come witha free Zara Phillips...Makes me want a Landy...
And without the royal... I hear that their WPG (Wine per gallon) is really high.
monthefish said:
chunkymonkey71 said:
Sad news, but how cool is that picture???
Makes me want a Landy...
I think that's the limited edition SVX that come witha free Zara Phillips...Makes me want a Landy...
alock said:
"The cuts will be made up of 300 managers..."
A recession always gives a company a good excuse to re-structure themselves more efficiently. In the boom years, most companies end up with too many layers where you have managers managing managers. If only the civil services did the same thing
The think with JLR is they have to stand by themselves now without the backup of the rest of the PAG. They've already had a massive sideswipe in the push this time last year for hybrid technologies (a massive recruitment drive) but I'm not sure the organisation was acting like an independant VM, rather still part of a larger group, with all the benefits of group research, shared product/platform development etc. A reorganisation to makeup for the lack of ford help was always on the cards.A recession always gives a company a good excuse to re-structure themselves more efficiently. In the boom years, most companies end up with too many layers where you have managers managing managers. If only the civil services did the same thing
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