One of the UK’s biggest car manufacturers, Jaguar Land Rover, is set to cut 5,000 of its 40,000 workforce to reverse the financial fortunes of the company.

The Financial Times is quoting many unnamed sources in the article published over the weekend, with one analyst alleging that the company is looking to switch strategy following years of serious mismanagement and a range of disappointing brand launches which have cost the company billions.

JLR had already announced a raft of changes as part of a £2.5bn savings drive under the title ‘Change and Accelerate’. But the latest news is much more worrying for the UK industry than first anticipated, the transformation programme was not expected to be so harsh on the workforce.

Responding to the rumours a JLR spokesman said: “Jaguar Land Rover notes media speculation about the potential impact of its ongoing Charge and Accelerate transformation programmes.

"The company does not comment on rumors concerning any part of these plans. As part of this, the company has taken action to reduce planned spending by about GBP 500 million to GBP 4 billion per year this financial year and next.”

The company had already reduced their workforce earlier this year by cutting the hours of contract staff, with the impact of Brexit thought to be a serious concern for JLR’s bosses. The sharp decline in the prospects of the diesel engine, as well as a slump in China sales have also hit the company hard.

Speaking about the story, a spokesman from Unite said: The government's demonisation of diesel, it's botched handling of Brexit and economic global uncertainty has seriously dented the hard work of Britain's vehicle workers in making their industry the jewel in the UK's manufacturing crown.”

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