Nearly 1,500 JCB jobs threatened as demand for machinery halves | Business

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Excavator builder JCB said up to 950 jobs are at risk after demand for its machines has halved due to the shutdown of the coronavirus. The company wrote to staff to say that jobs were at risk at its 10 factories in Staffordshire, Derbyshire and Wrexham in North Wales. A 45-day consultation period with staff will start on Monday.

About 500 Guidant staff, who work at JCB’s UK locations, are also laid off. JCB said jobs were at risk “because of the serious disruption to JCB’s activities from the Covid-19 crisis, which will see annual production cut in half.”

Graeme Macdonald, CEO of JCB, said the business climate meant that the company “had no choice but to make tough decisions to adapt to this new economic reality.”

“JCB had to act quickly for the long-term survival of the business,” he said. “In 2020, we planned to sell and produce more than 100,000 machines. With so much global uncertainty, that number currently looks like over 50,000 machines.

“Therefore, we have no choice but to align our cost base with demand for the rest of the year. No company could have predicted the extent of the Covid-19 crisis and its economic consequences. It is deeply unfortunate that we had to take these steps to restructure the business and that it has affected so many people. “

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