LONDON, United Kingdom - Jaguar Land Rover is reportedly looking to cut 5,000 jobs this year in a bid to save 2.5 billion euro.
The company is battling weak demand in China and a 30% fall in sales of diesel cars due to high levels of air pollution.
JLR is most likely to face a government crackdown since 9 in every ten cars that they sold in the UK last month were diesels.
The downturn in China has also greatly affected the production level since China is one of the biggest and most profitable markets for the company.
The British car makers have hired 4,000 workers in China since 2014. However global trade tensions have led to a 50% fall in China sales in recent months.
JTL is also exposed to a poor relationship with the Chinese sales network since dealers demand promotional incentives and better deals.
This move is also linked to Brexit uncertainty.
According to a Financial Times report, one in eight of JLR's 40,000 workforce in the UK could be made redundant.
Earlier last year, JTL cut 1,000 of its agency staff in Solihull plant, and up to 1,000 permanent employees were made to work three days a week until Christmas.