JCB announces 500 job losses

JCB is cutting around 500 jobs in response to a rapid decline in orders, which has resulted in a 20% reduction in its forecast production schedule for the remainder of this year.

The jobs will be lost across 11 JCB factories throughout the UK and will include a number of staff positions, although exact details have yet to be finalised.
 
Commenting on the announcement, Matthew Taylor, group chief executive officer, said: “Our products are used mostly in the construction sector, which has been badly affected by the global credit crisis and rising raw material costs.

Some emerging markets, such as Russia, Brazil and the Middle East continue to grow and the agricultural sector remains quite strong, but this is only partially offsetting the impact of the downturn in the construction sector, particularly in more developed markets.

“These job losses are regrettable but absolutely necessary to ensure that JCB remains competitive and well-positioned to benefit from any market upturn. However, we do not expect to see a recovery until late 2009 at the earliest.”