Jaguar Land Rover Plans to Cut 500 Management Jobs in the UK
Luxury car manufacturer Jaguar Land Rover is set to eliminate up to 500 management positions in the UK through a voluntary redundancy scheme. This move will affect approximately 1.5% of the company’s UK workforce. The decision comes after Jaguar Land Rover, a subsidiary of Tata Motors, reported a 15.1% decline in retail sales in the three months leading up to June.
The company faced challenges earlier this year when it temporarily halted car exports to the US due to tariffs imposed by President Donald Trump. Additionally, Jaguar Land Rover phased out older Jaguar models, impacting its operations and leading to the need for restructuring.
A spokesperson for Jaguar Land Rover stated that offering voluntary redundancy programs to eligible employees is a routine practice for the company. Meanwhile, recent data reveals a concerning trend in the UK labor market, with the unemployment rate reaching its highest level in four years. The Office for National Statistics reported an increase in the unemployment rate to 4.7% in the three months ending in May, up from 4.6% in the previous quarter.
Economists had projected a steady unemployment rate of 4.6% for the period. Despite this, the growth in average earnings, excluding bonuses, slowed to 5% in May, marking a nearly three-year low. The ONS Director of Economic Statistics highlighted the weakening labor market, with a decline in payroll employees and a continuous drop in job vacancies over the past three years.
The UK economy faced challenges as GDP contracted by 0.1% in May following a 0.3% decline in April, contrary to economists’ expectations of a slight growth of 0.1%. This situation may lead to an overall economic contraction in the second quarter of the year, posing a challenge to policymakers like Rachel Reeves, who are focused on driving economic growth. Reeves expressed disappointment over the latest figures but reaffirmed her commitment to stimulating economic growth and putting more money in people’s pockets.
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