JCB axes hundreds of jobs as bosses brace for market downturn

Lord Bamford’s JCB has axed around 230 workers amid a global slump in manufacturing.

It is understood the construction giant has slashed its headcount since the summer, as bosses prepare for a protracted downturn across the sector.

Those affected by the cuts are agency workers across different parts of the business, all of whom are drafted in from outsourcing specialist Guidant Global.

The decision to scale back its workforce comes ahead of the Government’s bid to strengthen workers’ rights, which will include awarding basic entitlements from day one of employment.

It also follows a downbeat trading update last month, as JCB, one of the largest manufacturers in Britain, warned that its outlook was growing increasingly uncertain.

Chief executive Graeme Macdonald warned that while profits rose from £557.7m to £805.8m in 2023, the business is now expecting a drop-off in activity.

There was no mention of any job cuts in the update.

He said: “The full-year market outlook for 2024 is less positive, with challenging conditions in the UK and Europe, particularly in Germany where economic activity has declined sharply during 2024.

“In the UK, housebuilding activity has contracted, which is having a negative impact on machine utilisation.”

JCB is owned by the billionaire Tory donor Lord Bamford, who took over the business from his father in the 1970s.

Since its launch in 1945, the company has grown into an internationally recognised brand operating 22 plants around the world.

This included a presence in Russia up until the war in Ukraine, although it halted exports to the country in 2022.

The latest job cuts will serve as a blow to union chiefs at GMB, which last month hailed an agreement that will see workers secure an inflation-matching pay rise for the next three years.

A JCB spokesman said: “Due to challenging market conditions in the UK and Europe, particularly in Germany where economic activity has declined sharply during 2024, demand for construction equipment has contracted.

“In order to ensure production remains aligned to prevailing demand for the rest of 2024 and beyond, JCB has made adjustments to its machine build programme. As a result, manning levels have also been adjusted accordingly and some agency employees have regrettably been released in recent weeks.”

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