Jaguar Land Rover (JLR), owned by Tata Motors, will be laying off about 500 employees—10 per cent of the workforce— at its factory in Halewood, UK, which currently has a 4000-strong workforce. The move is part of the measures to optimise car production and cut down costs, while at the same time, allowing the business to fulfil the growing demand for the new Range Rover Evoque and Land Rover Discovery Sport.
The shifts in the factory are also to be cut down, with effect from April 2020, from three to two-plus so that operational efficiency can be ensured without affecting the volume of production. The move will ensure sustainable growth for the business.
The shift changes have been brought about based on discussions and pay negotiations that took place last year. The employees are allowed to opt for an improved voluntary redundancy programme, if they so wish.
Tata Motors has been seriously working to improve long-term profitability and cash flow in the face of a slump in the UK car industry. Jaguar Land Rover experienced a six per cent drop in sales last year, due to the slowdown in the Chinese auto market and dipping demand for diesel vehicles in Europe. Of late, the industry seems to have started recovering in China, and sales have started to grow since December.