JCB announces job cuts

Updated 23.18 Mon Jul 14 2008

Keywords: credit crunch, job cuts, JCB

More than 500 jobs are being axed at digger giant JCB after a "rapid decline" in business.

The Staffordshire-based firm said the positions were expected to go across its manufacturing workforce.

"Our products are used mostly in the construction sector, which has been badly affected by the global credit crisis and rising raw material costs" - Matthew Taylor

All of JCB's UK factories will be affected by the job losses, hitting staff at eight factories in Staffordshire, two in Wrexham and one in Derbyshire.

The job cuts account for 8 per cent of JCB's UK total employee base, but a number of office-based staff positions are also facing the axe.

JCB said orders had plummeted, leaving its forecast production schedule for the rest of the year down by 20 per cent.

Matthew Taylor, group chief executive, said the job cuts were "regrettable but absolutely necessary".

He added: "Our products are used mostly in the construction sector, which has been badly affected by the global credit crisis and rising raw material costs."

Paul Kenny, general secretary of the GMB, said: "This is extremely bad news and we will be seeking urgent talks with the company to see what can be done to mitigate the worst aspects of the announcement.

"We had a feeling earlier this year that a recession was on the way and that construction and associated sectors would be the first to be hit."

JCB is the world's third largest manufacturer of construction equipment, with 18 plants around the world, employing more than 9,000 staff in total.