JCB cuts 684 more jobs

JCB is making another 684 workers redundant – bringing total job losses to nearly 1,700 since last summer.

The plant giant is blaming a lack of credit available from banks to machine buyers for the latest round of cuts

Production in the UK in the first three months of this year will be around 75% lower than at the same time last year and JCB chiefs have abandoned any hope of an upturn in the second quarter.

Chief executive Matthew Taylor said: “Back in November we forecast a moderate second quarter recovery in 2009 based on the fact that Governments around the world had pumped a huge amount of money into recapitalising financial institutions and had committed to stimulus packages which included significant spending on public construction projects.

“Two months later, despite the recapitalisation, customers are still struggling to buy machines because of a lack of available credit. And with Government-funded construction projects not moving forward quickly enough, this means the anticipated second quarter recovery simply won’t happen.

“The ongoing reluctance of the banks to provide credit is aggravating an economic downturn which is now becoming much steeper than we could have ever envisaged. This unprecedented situation needs to be addressed with some urgency so that confidence and stability can return; otherwise irreparable damage will be caused to the UK’s manufacturing industry.”

The latest round of redundancies will be concentrated at the firm’s Staffordshire base and affect 593 shopfloor and 91 office positions.