90 jobs axed at JCB

UK manufacturer JCB is to cut 90 jobs before Christmas. The shock news comes within weeks of the company shedding 130 temporary workers at its production facilities. The job losses - expected to affect all six of the company's factories - are targeted at office rather than production staff.

Although compulsory redundancies have not been ruled out a company spokesman said that most cuts are being sought via early retirement, voluntary redundancy and natural wastage.

So far, no news has emerged regarding voluntary redundancies, however, CJ has learnt that the first compulsory redundancy affects a marketing manager who has been with JCB for more than 20 years. Staff cutbacks, the first since the last recession, are blamed on an economic downturn both at home and abroad and the need to remain competitive.

Commenting on the factors affecting JCB's decision a spokesman said: "There's an acknowledged downturn in the manufacturing industry worldwide - particularly in South America, Eastern Europe and the Far East," and added: "The strength of the pound is also to blame."

Although unable to offer figures for this year's exports it is expected that the strength of sterling in 1998 has hit them hard.

Asked about the 130 workers laid off in October the spokesman said that it was not unusual for temporary jobs to be shed in the Autumn, but that this figure was unusually high.

To ease production costs in the UK, JCB has recently announced its decision to build a factory for the assembly of backhoes in the United States.

Asked whether this plant, which is due to be completed before the end of 1999, could result in further job losses in the UK, the spokesman said: "No." All machines assembled at the plant will be for the North American market.

JCB currently has around 3,500 employees at factories in Rocester, Rugeley, Uttoxeter, Cheadle and Wrexham.