Jaguar Land Rover to cut 5,000 UK jobs

The carmaker has already moved to ensure it will still have a plant inside the EU after Britain’s planned departure from the bloc on March 29. (File/AFP)
Updated 10 January 2019

Jaguar Land Rover to cut 5,000 UK jobs

  • The iconic British carmaker, which is owned by India’s Tata Motors, employs more than 40,000 people in Britain
  • The job layoffs are part of a £2.5 billion ($3.2 billion, 2.75 billion euro) cuts program

LONDON: Jaguar Land Rover is set to announce up to 5,000 job cuts on Thursday, the BBC reported, after being buffeted by slumping sales in China and concerns over Brexit.
The iconic British carmaker, which is owned by India’s Tata Motors and employs more than 40,000 people in Britain, could not immediately be reached for comment when contacted by AFP.
Marketing, management and administration roles are expected to be those most affected, the BBC report said.
According to the broadcaster, the job layoffs are part of a £2.5 billion ($3.2 billion, 2.75 billion euro) cuts program.
The report said JLR had been hit by a slump in Chinese sales, a downturn in diesel vehicle sales and fears about Britain’s competitiveness after Brexit.
The carmaker has already moved to ensure it will still have a plant inside the European Union after Britain’s planned departure from the bloc on March 29.
In October, JLR opened a 1.4-billion-euro ($1.6-billion) factory in Nitra, western Slovakia, its first in continental Europe.
In July it had warned that a “bad” Brexit deal could jeopardize planned investment of more than $100 billion, saying the future was unpredictable if free and frictionless trade with the EU and unrestricted access to its single market was not maintained.
Britain’s business minister Greg Clark said a no-deal Brexit would be a disaster for the firm.
“JLR is a stellar company with a first-class workforce,” he told BBC radio.
“They have always been clear that their success depends on exports, including to the rest of the EU.
“They are one of the prime examples of a brilliant just-in-time manufacturing process... that helps them be competitive.
“Given the difficulties that they are going through... to add further costs and further disruption from a no-deal Brexit, it’s clear why they have been so clear why this would be against their interests.”


Gulf Marine CEO quits after review sparks profit warning

Updated 22 August 2019

Gulf Marine CEO quits after review sparks profit warning

  • Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence

DUBAI: Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12 percent down.

The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million, below $58 million that it reported last year.

A source familiar with the matter told Reuters that Anderson, who has served as CEO for 12 years, was asked to step down. Anderson could not be reached for comment.

The company, which in the past predominantly operated in the UAE, expanded operations and deployed large vessels in the North Sea and Saudi Arabia nine years ago and listed its shares in London in 2014.

Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence.

The North Sea has seen a revival in production in recent years due to new fields coming on line and improved performance by operators following the 2014 oil price collapse.

Still, the basin’s production is expected to decline over the next decade, according to Britain’s Oil and Gas Authority.

“(The CFO’s) review has coincided with a pause in renewables-related self-propelled self-elevating support vessels activity in the North Sea, which will impact several of the higher day-rate E-Class vessels,” Investec wrote in a note.

Gulf Marine appointed industry veteran Kersley as chief financial officer in late May as it sought to halt a slide which has seen the company’s shares fall nearly 80 percent last year and another 23 percent so far this year.

The company said market conditions remained challenging and that it was still in talks with its financial advisors regarding a new capital structure.

“Management, the new board and the group’s advisors, have been in negotiation with the group’s banks on resetting its capital structure and progress has been made,” it said in a statement.

Last year, Gulf Marine said contracts were delayed into 2019 as the company was seen to be in breach of certain banking covenants at the end of 2018.

The company said it was still in talks with its banks and individual lenders with hopes of getting a waiver or an agreement to amend the concerned covenants.