Graeme Macdonald

JCB says it will cut 400 jobs over the coming weeks after a "dramatic" slow down in world markets.

The Staffordshire-based equipment firm cites a 43% fall in the equipment market in Brazil, Russia, China and India from the same period in 2014.

Staff across the UK could be affected and union consultation has begun, according to chief executive Graeme Macdonald.

He says there was a "perfect storm" across worldwide markets which are either down or slowing.

"In the first six months of the year, the market in Russia has dropped by 70%, Brazil by 36% and China by 47%. Parts of Europe are also struggling, with France down by 26%.

"Even the strong growth in the UK and North America has softened due to a fall in market confidence over the summer, " according to a company statement.

Macdonald says the business, which currently employs about 6,500 UK staff, has had to make some "difficult but necessary" decisions.

JCB, one of the world's top three manufacturers of construction equipment, currently has eight factories in Staffordshire, one in Derbyshire and two in Wrexham. JCB employs around 12,000 people on four continents and sells its products in 150 countries through 2,000 dealer depot locations.