Jaguar Land Rover announced a reduction of 500 jobs in the UK due to falling sales and the negative impact of the trade war with the US. The layoffs will take place under a voluntary program and will primarily affect management. This is reported by UNN with reference to Sky News.
Details
Jaguar Land Rover (JLR) has announced plans to cut 500 jobs as part of cost-saving measures, battling a sharp drop in sales.
The British company said that "the reduction in management positions, which accounted for 1.5% of its workforce, will be completed through a voluntary redundancy program."
As part of normal business practice, we regularly offer eligible employees the opportunity to leave JLR through limited voluntary redundancy programs.
Uncertainty over tariffs, combined with planned production cuts of older Jaguar models, led to a "15% drop in sales in the three months to June, to just over 94,000."
Addition
As stated in the publication, JLR has recently been experiencing difficulties due to the trade war with the US. In April, the country temporarily suspended exports to the US, its largest foreign market, after Donald Trump raised tariffs on cars to 25%.
They were later reduced to 10% under a truce agreement between the US and the UK, but this rate only applies to cars manufactured in the UK.
The terms of the agreement also limit total annual car exports to the US to 100,000 models, so a higher rate will apply to cars that do not fit within this threshold.