Jaguar Land Rover is expected to cut up to 5000 jobs next year as part of its £2.5bn turnaround plan.

The car manufacturer, which posted a £90m loss in the third quarter, has been hit by a lessening demand for diesel cars and costs associated with Brexit.

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The company will outline part of its restructuring plan at the beginning of next year and is expected to axe thousands of jobs, the Financial Times reported.

In October the group announced its “Change and Accelerate” transformation programme which aims to deliver £2.5bn in cost savings by 2020.

Jaguar Land Rover has already made 1,000 roles at its Solihull plant redundant and has reduced working hours at other sites.

A spokesperson for the company said: “Jaguar Land Rover notes media speculation about the potential impact of its ongoing Charge and Accelerate transformation programmes.

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“As announced when we published our second quarter results, these programmes aim to deliver £2.5nn of cost, cash and profit improvements over the next two years. Jaguar Land Rover does not comment on rumours concerning any part of these plans.”