Fall in demand leads to 650 job losses at JCB

JCB, one of the largest construction equipment manufacturers in the world, has announced 650 job losses.

The company has announced a redundancy programme that will see 500 manufacturing jobs go, along with 150 other jobs across the UK.

The company has experienced a severe fall in demand for its products which has resulted in a 20% slump in the forecast production schedule for this year. The company said it does not anticipate a recovery until late next year.

Rising raw material costs and the credit squeeze has had a devastating impact on the construction industry.

Matthew Taylor, JCB’s CEO, said increased demand for our products in emerging markets such as Russia, the Middle East and Brazil has not been sufficient to weather the downturn in the construction industry in developed markets.

While the job losses are regrettable, they are essential to JCB’s future position, added Mr Taylor.

The Staffordshire-based firm has 17 factories in the UK, Brazil, China, Germany, India and North America. It has a workforce of around 8,000.

The company makes over 300 types of machines for construction, industry and agriculture.

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