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Jaguar Land Rover (JLR) has confirmed that it will shed 1,000 agency staff jobs at its Solihull plant in the UK Midlands over the next two years because of "continuing headwinds impacting the vehicle industry".
Jaguar sales dropped 26 percent so far this year while Land Rover demand fell 20 percent in its home market as buyers shun diesel, concerned about planned tax rises and potential bans and restrictions in several countries. Now the company has told staff at its Birmingham factories that their contracts won't be renewed as it implements a cutback.
Meanwhile, 362 permanent staff will be transferred from another West Midlands site, at Castle Bromwich, to Solihull.
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Despite the bleak figures for March, the company reported retail sales of 614,309 vehicles for the financial year ending March 31, up 1.7% on the previous year. Additionally, even the uncertainty of Brexit is being seen as one of the reasons.
"In light of the continuing headwinds impacting the vehicle industry, we are making some adjustments to our production schedules and the level of agency staff".
The uncertainty of Brexit has also led to falling of auto registrations in United Kingdom which has been a constant trend for the past year.
JLR chief executive Ralf Speth had previously pointed to weakness in the economy as well as a drop in demand for diesel and tax changes for creating a "reaction in the consumer base".
Jaguar reduced production at its Halewood plant back in January in response to sinking demand, but that move wasn't thought to involve any job losses.
Asked in March if there could be further United Kingdom production cuts, Speth told Sky News: "It's quite clear that if there's no demand, then we have to adapt our production levels".
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