"Today, we are also announcing a non-cash exceptional charge to reduce the book value of our capitalised investments".
Jaguar Land Rover posted a pre-tax loss of £3.4 billion in the final three months of 2018, caused by a massive one-off adjustment in the value of its investments. Its heavy production presence in the United Kingdom exposes it to a disorderly Brexit, the likelihood of which has risen over the past few weeks, Fitch Ratings said this week.
Most of the cuts are expected to be in the United Kingdom, with a voluntary redundancy programme being launched.
Land Rover sold 30,934 vehicles in the month, down 11.6 per cent year-on-year as strong sales of the refreshed Range Rover (up 60 per cent to 4,955) and Range Rover Sport (up 31.3 per cent to 7,122) were more than offset by the run out of the Evoque and lower sales of other models largely reflecting weaker demand in China.
Its transformation programme is on track to achieve £2.5bn of cash and profit improvement by March 2020.
Although the latest accounting write-down will not affect JLR's cash holdings, the company said it is carrying out a "reassessment of investment spending to ensure adequate returns".
The company is in track with investment in electrification with Electric Drive Units to be produced at the Engine Manufacturing Centre and a new Battery Assembly Centre to be established in the United Kingdom, it added.
"This is a hard time for the industry, but we remain focused on ensuring sustainable and profitable growth, and making targeted investments, that will secure our business in the future", JLR chief executive Ralf Speth said commenting on the quarterly results.
Jaguar Land Rover employs just under 39,000 workers at sites including Castle Bromwich, Solihull and Wolverhampton in the West Midlands, and Halewood on Merseyside.