Jaguar Land Rover is reportedly scrapping 1,000 agency staff in Solihull.
The car giant is blaming Brexit and the fall in demand for diesel models, according to reports.
The plant in Lode Lane manufactures the Range Rover, Range Rover Sport, Land Rover Discovery and Jaguar F-Pace models.
Jaguar Land Rover has been making serious moves over the past few years to target the hybrid and electric markets and said last year that from 2020 all new Jaguar Land Rover vehicles would be electrified.
Here's what we know so far:
What is happening?
The company employs thousands of both full-time and agency workers at sites across the West Midlands including in Castle Bromwich, Wolverhampton, its head office in Coventry and Solihull.
Earlier this year, JLR said it would temporarily reduce production at its plant in Halewood, Merseyside, in response to weakening demand due to Brexit and tax hikes on diesel cars.
What have JLR said?
The carmaker said it would make an announcement to employees on Monday regarding its production plans for 2018/19.
"In light of the continuing headwinds impacting the car industry, we are making some adjustments to our production schedules and the level of agency staff.
"We are however continuing to recruit large numbers of highly skilled engineers, graduates and apprentices as we are over-proportionally invest in new products and technologies.
"We also remain committed to our UK plants in which we have invested more than £4bn since 2010 to future proof manufacturing technologies to deliver new models.”
As is standard business practice, Jaguar Land Rover regularly reviews its production schedules to ensure market demand is balanced globally.
On Monday we will be cascading our 18/19 production plans for the next fiscal year to our workforce.
In light of the continuing headwinds impacting the car industry, we are making some adjustments to our production schedules and the level of agency staff. We are however continuing to recruit large numbers of highly skilled engineers, graduates and apprentices as we are over-proportionally invest in new products and technologies. We also remain committed to our UK plants in which we have invested more than £4bn since 2010 to future proof manufacturing technologies to deliver new models.
We are not renewing TEMPORARY contracts of a number of agency staff at Solihull.
How many are employed?
There are 3,200 people employed at the Castle Bromwich site and a further 10,000 at Solihull.
Jaguar Land Rover would not confirm the number of jobs to be lost.
JLR employs 40,000 people in the UK, 10,000 at Solihull.
How have workers reacted?
“I’m an agency worker which is a worry,” one unnamed worker told BirminghamLive.
"We’ve been told there is a meeting on Sunday - they have a plant in Slovakia being built and apparently the Discovery is going to be built over there.
"This means it’ll go from a three shift rotation to a two shift rotation.
"That’s a 33% cut.”
Another worker told us: "Castle Bromwich is down to one shift and people are moving to Solihull.
"There has been a 25 per cent downturn.”
Why is this happening?
The economy of the West Midlands will suffer massive damage as a result of Brexit and shrink by 8% even if there is a comprehensive trade deal, the Government’s own analysis shows.
And if we crash out of the EU without a deal - an option the Government says it hope to avoid but has not ruled out - then economic output in the West Midlands will be hit by 13%.
The devastating effect on the West Midlands economy is revealed in impact assessments which the Government attempted to keep secret.
They confirm that the West Midlands, with its manufacturing industries, would be harder hit than most other parts of the UK. If the Government assessments are right, it means there will be fewer jobs and lower wages.
The analysis shows that Brexit would mean the West Midlands economy shrank by 2.5% even if the UK remained a member of the Single Market.
This “best-case scenario” appears unlikely, as both Labour and the Conservative government insist that Brexit must involve leaving the single market.
The BBC reports that the UK car industry’s GDP would shrink by 1% if the UK remained in the EU single market, but would lose 8% if there was a free trade agreement and 8.5% if the UK left without a deal and went to World Trade Organisation rules.
Birmingham Selly Oak MP Steve McCabe said: “The figures are very worrying. What they show is that if we end up in a situation where we can’t secure a favourable trade arrangement, it’s going to do untold damage.”
Liberal Democrats said the analysis strengthened the case for holding a second referendum on Brexit.
Tom Brake, Liberal Democrat Brexit Spokesperson, said: “This is a damning outlook for the West Midlands. The Tories are putting everything on the line because they do not care about the lives and livelihoods of the people of the Midlands.
“The government need to start being clear what they are fighting for. They are still keeping no deal on the table despite how crippling it would be to the regional economy.
“People did not vote to make themselves poorer. They should be allowed a vote on the final deal and a chance to exit from Brexit.”
What do the experts say?
Automotive industry expert David Bailey, of Aston University Business School, said:
"Sadly it’s due to a combination of Brexit slowdown and diesel woes. It’s not a surprise after the extended shut downs at JLR earlier this year.
"Diesel sales are down by over 30% this year given consumer confusion. JLR is especially exposed: Jaguar sales are down 26% so far this year in the UK and Land Rover sales are down 20%.
"It should be noted that we have seen 12 consecutive months of car sales falling year-on-year.
"Globally the firm is still doing very well and the firm continues to invest heavily in new technology. It is still hiring engineers, apprentices and graduates.
"The government’s diesel tax late last year really didn’t help; this has sown extra confusion for drivers who are holding off on replacing diesels.
"JLR has a flexibility agreement with unions in the region, so temporary agency workers are being laid off at Solihull while full time permanent staff at Castle Bromwich are being moved across to Solihull."