JCB cuts may near 700

Reports of job cuts of up to 500 at JCB may have been underestimated, according to latest reports.

Reports of job cuts of up to 500 at JCB may have been underestimated, according to latest reports.

Figures suggesting the possibility of 700 workers receiving their notice have surfaced, prompting fears that the company is in more trouble than was once considered.

Originally, 500 manufacturing jobs were announced to be going, but since those announcements it has become clearer that around 200 office-based jobs will also be culled.

It has been explained by the company that the job cuts are being made in reaction to lowered revenues as a result of their close ties to the construction industry, which is undergoing severe financial pressure during the credit crunch.

JCB group chief executive officer Matthew Taylor said: "Our products are used mostly in the construction sector, which has been badly affected by the global credit crisis and rising raw material costs.

"Many JCB dealers around the world are experiencing lower sales rates because of reduced customer activity, mainly in the house building and commercial property sectors, and this has a direct impact on our machine build programme."

Emerging markets, Mr Taylor added, were performing well amid the crisis, although not well enough to subsidies the heavy losses felt across the Western markets.