Agency workers employed by teletruk maker JCB were told they would lose their jobs soon after the company's yearly summer shutdown.
According to the
Uttoxeter Advertiser, about 200 agency workers at the Rocester headquarters have been told they were no longer needed after a meeting this month.
The
Advertiser reports that JCB blamed the job losses on uncertainty in global economies, with product demand decreasing in many world markets.
This comes at the back of JCB's announcement in May that it would hire up to 350 employees at its UK factories, including the Rocester headquarters, JCB Heavy Products in Uttoxeter and JCB Earthmovers in Cheadle. Vacancies were also announced at JCB plants in Rugeley, Derbyshire and Wrexham. The jobs were available through recruitment agency Blue Arrow and included welders, machinists, paint sprayers, fabricators, assemblers and forklift drivers.
JCB took on the agency staff a week after announcing it had landed a major deal with the Ashtead Group worth GBP36 million (USD56 million), the
Advertiser notes. This included an order for 550 machines from the UK arm of the company A-Plant worth GBP16 million (USD25 million)
(Forkliftaction.com News #567).
A company spokesman told the paper: "JCB has just experienced the strongest start to a year in its history with sales in the first six months hitting a new record.
"However, there is much uncertainty in global economies, with demand softening in many parts of the world.
"As a result, a number of agency employees have been released as we align machine build rates with anticipated demand for the rest of the year."
According to the
Advertiser, the company's Rocester factory is currently closed for its annual summer break.
JCB's 2011 turnover rose 37% from the previous year's GBP2 billion (USD3.25 billion) to GBP2.75 billion (USD4.46 billion), the highest level in its 66-year history. It was more than double the GBP1.35 billion (USD2.19 billion) in sales JCB recorded in 2009
(Forkliftaction.com News #563).
JCB is investing heavily in manufacturing facilities in the UK and overseas, and later this year a new 350,000 sqft. (32,516 sqm) factory will start producing backhoe loaders and excavators in Sao Paulo, Brazil.
In 2011, JCB retained its position as the world-leading manufacturer of backhoe loaders and telehandlers. The company employs over 10,000 people around the world and has 770 dealers with 2,000 dealer depots.
Forkliftaction.com News contacted JCB for comments on the
Uttoxeter Advertiser's report but did not receive a response by press time.