JCB job cuts could hit 700

Job cuts at JCB are worse than initially feared, with up to an eighth of the workforce now facing redundancy.

Last night JCB confirmed that it would cut 500 manufacturing jobs.

But it has emerged that up to 200 office-based positions are also at risk.

If all of those posts are made redundant it will bring the total number of job losses at the plant manufacturer to 790 since April this year - 13% of its 5,900-strong UK workforce.

JCB employs over 9,000 people worldwide.

Meanwhile a company spokesman told CJ that the company also expected to cut overtime at its plants in India, in response to worsening global economic conditions.

In its announcement yesterday, JCB put the redundancy programme down to a "rapid decline" in orders, which had resulted in a 20% drop in its forecast production schedule for the rest of the year.

Matthew Taylor, JCB's 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. Many JCB dealers around the world are experiencing lower sales rates because of reduced customer activity, mainly in the house building and commercial property sectors, and this has a direct impact on our machine build programme.”

He added that some emerging markets like Russia, Brazil and the Middle East were performing well, it was not enough to offset the impact of the downturn in developed markets.

JCB is now expected to enter into consultation with the GMB trade union and staff representatives for each of the affected businesses.