Published Date : Sep 22, 2015
In the U.K., worker unions have expressed shock over plans to cut 400 jobs at JCB, which alerts that a downfall in world markets, including China could be reason for more losses.
In the recent weeks, market scenario in the construction equipment sector have deteriorated, thereby leading to the announcement.
The leader of the GMB union said that, the loss of the staff is the first wrinkle as a result of the decline in the world markets, which includes China that has impacted the economy in the U.K.
The wave of uncertainty will possibly lead to more job losses in future in the sectors that have trade associations with the rest of the world.
The trade association in the U.K., GMB is making all efforts to avoid necessary redundancies and to lessen the impact on the workforce.
As commented by JCB, the company has begun with a consultation process with the staff in order to discuss the proposed redundancies, which has occurred due to rapid deterioration in the construction equipment market globally.
A further statement says that the slowdown that has happened in the last few weeks are noticeable, especially in the emerging markets, which has led to sharp drop in machine orders.
Consequently, JCB has briefed employees that as much as 400 positions are at risk in the U.K., even though the company attempts to reduce the impact taking into account voluntary redundancies.
As per the Chief executive of JCB, the market scenario in the construction equipment sector have been distressing for the past couple of weeks, but it has worsened rapidly in the recent weeks.
The JCB chief continued that the scenario is not expected to improve in the near term. So the company plans need to take difficult but decisive actions in order to align overhead to lessen sales forecasts.