Archive : Jaguar Will Cut 1200 Jobs

Reuters

Jaguar P.L.C. plans to eliminate 1,200 jobs in the next three years to increase productivity and compete better with West German rivals, The Financial Times newspaper reported Saturday. Jaguar’s chairman, Sir John Egan, said layoffs would not be necessary. The aim of the cutbacks is to bring Jaguar closer to its production target of six cars annually for each worker, up from 4.5 now. Mr Egan said Jaguar would make about 54,000 cars this year, up from 48,000 last year. But he said a recession in the United States luxury car market could mean Jaguar may not meet its target of 60,000 cars next year.

Jaguar sells more than half its cars in the United States and hopes to at least keep its United Sates sales at last year’s level of 23,000 cars, although profitability will be lower because of the pound’s strength against the dollar, Mr. Egan said.

”Each 10 cents off the dollar is costing us $:35 million off the bottom line,” he said. Mr. Egan’s remarks come a week before Jaguar is to announce interim results. Many industry analysts expect an erosion in pretax profits to around $:30 million ($51 million), from $:45.7 million ($77.7 million) in the first half of 1987.

Keith Adams

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