JCB is axing hundreds of jobs as bosses brace for market downturn

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

The construction giant is understood to have cut headcount since the summer as bosses prepare for a prolonged downturn in the sector.

Those affected by the cuts are workers from different parts of the business, all recruited from outsourcing specialist Guidant Global.

The decision to cut its workforce comes ahead of the Government’s move to strengthen workers’ rights, which will include granting basic rights from the first day of employment.

It also follows an update on weak trading last month as JCB, one of Britain’s biggest manufacturers, warned that its outlook was becoming increasingly uncertain.

Chief executive Graeme Macdonald warned that while profits rose from £557.7m to £805.8m in 2023, the company now expects a decline in activity.

No job cuts were mentioned 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 fell sharply in 2024.

“In the UK, house building activity has contracted, which has a negative impact on car use.”

JCB is owned by 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 recognized brand, operating 22 factories worldwide.

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

The latest job cuts will come as a blow to union bosses at the GMB, who last month hailed a deal that will see workers get a pay rise equal to inflation over the next three years.

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

“To ensure that production remains aligned with prevailing demand for the remainder of 2024 and beyond, JCB has made adjustments to its machine building schedule. As a result, staffing levels have also been adjusted accordingly and some agency staff have unfortunately been let go in recent weeks.”

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