Buffeted by falling sales and a credit crunch, Tata Group-owned Jaguar Land Rover on Wednesday announced laying off 450 more jobs, including 300 managers. The job losses will also affect 150 salaried agency staff, the company announced.
The Tata Group bought the company from Ford in 2008 for pound 1.7 billion. It has recently sought assistance from the British government to tide over the economic downturn.
The company announced that action to cut jobs was to combat the credit crunch and a "severe reduction in demand." The firm, based in Gaydon, Warwickshire, employs about 15,000 people at plants in Coventry, Solihull, Castle Bromwich and Halewood.
Speaking to newspersons, company chief executive David Smith said that he did not expect sales to return to normal levels "for some time." He said that the firm needed to become more efficient so it could invest in new models and technology when the market improved.
He added, "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. 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."
The company said managers would not receive any bonuses in 2009 and management pay increases had been deferred until October 1 "at the earliest."
In November, the company had cut 850 agency, IT and engineering staff.
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