Jaguar Land Rover (JLR) is expected to announce plans to cut thousands of jobs as part of a £2.5bn plan to reverse losses.

The British company, which employs 44,000 in the UK and cut 1,000 temporary contract workers at its plant in Solihull last year, has been hit by poor sales in China and a drop in demand for diesel cars.

JLR posted a £90m loss in October and announced plans to save £2.5bn, including £1bn of costs cuts.

At the time, it did not say how many jobs would be lost, although the Financial Times reported in December up to 5,000 jobs could go.

JLR, owned by India's Tata Motors, operates factories in Halewood, Solihull, Castle Bromwich and Wolverhampton.


In its biggest market, China, the car industry recorded its first slump in sales in more than two decades. Sales fell 6% to 22.7m units last year, the China Passenger Car Association said.

Trade tensions between the United States and China have made Chinese consumers more cautious.

JLR's sales have also been hurt by consumer confusion and a shift away from diesel-powered cars in Europe following the VW emission cheating scandal. More than 80% of JLR's vehicles are sold with diesel engines in Europe.

The company has also been grappling with the cost of Britain's decision to leave the European Union on 29 March.

It has warned a poor exit deal could cost it £1.2bn a year.

The company has opened a £1bn plant to Slovakia where it currently employs 1,500 people.

Brexit has made the future of the UK's car manufacturing industry uncertain, with Toyota and Vauxhall among those to warn of negative impacts in the event of a hard Brexit.