JCB cuts 1,500 jobs


JCB is to lay off nearly 1,000 people at its UK factories. Five hundred agency jobs are also affected.

The company said the move, which will hit more than a fifth of its total UK workforce, is necessary because of a 50% fall in global demand due to Covid-19. The news comes just a week after the manufacturer announced a partial restart of production.

Chief executive Graeme Macdonald said the company had planned to sell more than 100,000 machines this year but added: “With so much global uncertainty, that figure right now is looking more like 50,000 machines.

“In the UK, around 85% of everything we manufacture is exported and our UK factories will now produce machines at half the rate we had planned just a few months ago. As a result, we have no choice but to align our cost base to demand for the rest of the year.

“JCB has had to act quickly for the long-term survival of the business, which has been at the heart of our decision-making throughout this difficult period.”

The company halted production on March 18 and most of the 6,500 employees have been furloughed since April. Production resumed last week at a low level, mainly to satisfy demand for agricultural equipment.

A 45-day consultation period on the lay-offs began today.


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©Scottish Plant.  Article posted 18/5/2020