Jaguar Land Rover (JLR) will today announce it is cutting up to 5,000 jobs from its 40,000 strong UK workforce.
Management, marketing and administrative roles are expected to be hardest hit, but some production staff may also be affected.
The layoffs are part of a £2.5bn cost-cutting plan amid what industry insiders have called a “perfect storm”.
They mean a downturn in Chinese sales, a slump in diesel sales and concerns about UK competitiveness post-Brexit.
JLR is particularly exposed to the first two of these factors.
China is the company’s biggest and hitherto most profitable market. But sales in China have fallen nearly 50% in recent months as cautious Chinese consumers have been holding back on big ticket purchases amid global trade tensions.
JLR is also one of the most heavily-exposed car makers to ongoing consumer confusion about the wisdom of buying a diesel car in the aftermath of the VW emissions scandal.
Ninety per cent of its vehicles are diesel-powered, although it has been investing in new electric and hybrid vehicles.
Most recently it announced it would move all production of the Land Rover Discovery to a new plant in Slovakia with plans to hire up to 3,000 workers.