Over a thousand temporary jobs will be cut to save money.
Jaguar Land Rover will shed more than four times the number of jobs though, with 1,100 jobs set to go as part of a push to save £1 billion. That billion is part of a wider £5 billion cost saving plan that the Tata owned firm is hoping to achieve by March 2021.
So far it has already made £3.5 billion in savings, and it also wants to make a £500 million capital expenditure saving for the current fiscal year.
"Conserving cash and prioritising capital expenditure, and targeting investment spending to the right areas is our focus," said Tata Motors Chief Financial Officer PB Balaji
While the 1,100 agency jobs will go, Jaguar Land Rover has resisted laying off any of its 38,000 permanent employees so far, although it is continuing to use the British government’s furlough scheme as it looks at how fast demand grows as lockdown measures are eased, according to Automotive News Europe.
In China, where sales slumped at the beginning of the coronavirus crisis, Jaguar Land Rover CEO Ralf Speth said that the company was showing signs of recovery.
“In China, we are beginning to see recovery in vehicle sales and customers are returning to our showrooms,” Speth said.
The coronavirus pandemic has led to Jaguar Land Rover recently posting a pre-tax loss of £501 million, although it continues to make up most of Tata’s revenues.
The Indian conglomerate is looking at whether it will remain in certain business as part of a wider cost-cutting regine at the company. On Monday it posted 27.7 percent reductions in revenue for the quarter through March 31.