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Jaguar Land Rover has confirmed it will cut 4500 jobs as it wrestles with a flawless storm of weakening demand for its premium cars, especially in China, the uncertainties of Brexit and the rising costs of developing the next generation of cars for the electric age.

There is also concern about competitiveness post-Brexit.

The company, which employs almost 40,000 people in Britain and has been boosting its workforce at new plants in China and Slovakia in recent years, declined to comment when contacted by Reuters on Thursday. "We will continue to work closely with the company to support their long-term plans".

The cuts, representing roughly 10 per cent the company's workforce, are part of a $3.2 billion (2.5 billion-pound) push announced past year to reduce costs and boost cash flow through 2020.

In 2018, the company opened its latest vehicle manufacturing plant in Slovakia as well as investment into specialist engineering hubs in the Republic of Ireland, Hungary and Manchester, UK.

Jaguar Land Rover, owned by Indian conglomerate Tata Motors (ttm), has seen a decline in sales in China as well as a drop in diesel sales in Europe, Reuters reports.

Jaguar Land Rover announced it is cutting thousands of jobs.

The job cuts announced Thursday will affect mostly workers in the United Kingdom, including contractors, senior management, supervisors, engineering, and design workers, according to people familiar with the matter who asked not to be named discussing details that weren't announced. They come on top of the 1,500 people who left the company in 2018.

In July last year, the company said it needed more certainty around Brexit in order to continue investing in its United Kingdom operations and warned that a "no-deal" Brexit would cost the company more than £1.2bn in profit each year.

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"Revealing the iconic Defender, investing in cleaner, smarter, more desirable cars and electrifying our facilities to manufacture a future range of British-built electric vehicles will all form part of building a globally competitive and flourishing company", he added.

JLR has warned of further losses in the event of the United Kingdom leaving the European Union with a poor trade deal or no deal.

China is the company's biggest and profitable market, but sales have plummeted almost 50% there.

While China's economy is still far from in recession - it's still projected to grow at 6.5% this year - there is likely to be more bad news to come.

It comes amid global trade tensions which have made Chinese consumers more cautious.

"The announcement on job losses will be substantial, affecting managerial, research, sales, design", said the source, who spoke on condition of anonymity, not affecting production-line staff "at this stage".

It has hired 4,000 workers in China since 2014.

JLR also employs around 10,000 people in Solihull - its biggest factory - and around 3,200 at its Jaguar factory in Castle Bromwich, where a three-day week was introduced in the autumn.


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