In the latest profit figures from the luxury car manufacturer, Jaguar Land Rover was heavily impacted by a £3.3 billion writedown in the third quarter. It slumped from a £400 million profit in the previous financial year as it was hit by the economic slowdown in China. Weakness in the Chinese car market resulted in a 5.8 percent decline in sales to 578,915 vehicles in the region. Jaguar Land Rover has previous announced 4,500 job cuts.
However, the firm was optimistic about recent sales.
The company said it delivered a £120 million pre-tax profit in the fourth quarter to March 31 following nine months of losses.
Jaguar Land Rover also saw unit sales jump in the UK and in north America, which went up by 8.4 percent and 8.1 percent respectively during the year.
Full-year revenues fell 5.6 percent to £7.1 billion, as growth in the US and UK was offset by “weaker Chinese market conditions”.
Jaguar Land Rover first announced a £2.5 billion turnaround programme earlier this year.
So far the car giant has spent more than £149 million on redundancy costs.
Jaguar Land Rover claims the programme has already saved the company £1.25 billion.
Chief executive Dr Ralf Speth said: “Jaguar Land Rover has been one of the first companies in its sector to address the multiple headwinds simultaneously sweeping the automotive industry.
“We are focused on the future as we overcome the structural and cyclical issues that impacted our results in the past financial year.
“We will go forward as a transformed company that is leaner and fitter, building on the sustained investment of recent years in new products and the autonomous, connected, electric and shared technologies that will drive future demand.”
Meanwhile in other motor news, Ford announced today it was cutting 7,000 jobs.
Ford wants to save around £471million ($600million) per year and said the jobs will go by August.
The aim of the major restructure is to eliminate bureaucracy and increasing the number of workers reporting to each manager.
In the US, around 2,300 jobs will go.
It is understood 1,500 people have already been dismissed, while 500 more workers will be let go this week.