Jaguar Land Rover could 'axe up to 5,000 jobs' as part of its plans to drive £2.5bn of profit, cost, and cash flow improvements over the next 18 months, reports have suggested.

JLR would not comment on the claims, published in a report featured in the Financial Times, describing them as “speculation”.

But back in April the manufacturer announced plans to cut 1,000 manufacturing contractor jobs amid falling demand amid anti-diesel sentiment and the pressures of Brexit. 

And in October, N Chandrasekaran, chairman of JLR's parent company Tata Motors, announced a turnaround programme at JLR "to drive £2.5bn of profit, cost, and cash flow improvements over the next 18 months".

He said: "In JLR, market conditions, particularly in China, have deteriorated further. To weather this volatile external scenario, we have launched a comprehensive turnaround plan to significantly improve our free cash flows and profitability."

JLR currently employs 40,000 people in the UK, mostly in the West Midlands.

Tata Motors has appointed Boston Consulting Group to put together the turnaround plan for the manufacturer.

A reduction in annual investment from £4.5bn to £4bn this year and next, and a reduction in the stock of finished cars it holds and its working capital by £500m are all said to form part of the changes.

JLR will also cut £1bn in costs and has already introduced a freeze on recruitment and all non-essential travel, as it battles falling demand.

Commenting in response to newspaper reports about potential job losses in the New Year, a Unite spokesperson said: “Unite is not aware of any further job losses to those already announced and planned for early in the new year at Jaguar Land Rover, Unite also expects ongoing transparency regarding the difficult current climate the automotive sector is operating in the UK and its impact with the company.

“Unite will continue to press the car maker for assurances over the jobs and skills of our members who have worked tirelessly over the past decade to make the company the global success story it is today.”