Background: 

Jaguar needed to cut back on production and back-office staff costs in response to the slump in demand for new cars. They opened up a wide range of innovative options for staff to consider alongside voluntary redundancy.

Approach:   

Simon Warr said the company needed to cut back in all areas, offering voluntary redundancies, a sabbatical programme on 80% pay, extended weekend shutdowns and even community work, “although that is logistically difficult – we can’t just release hundreds of employees out onto the streets to help people”.

Jaguar Land Rover further announced that no executive bonuses would be paid, and a new redundancy scheme would lead to a 15% reduction in white-collar staff. “Since we were bought by Tata motors last year – and are no longer a part of Ford – we are a smaller operation and don’t need that kind of large back-office operation.”

What happened:   

In January 2009 Jaguar Land Rover reported a higher than expected take-up of an offer that lets workers go on sabbaticals of several weeks at 80 per cent pay, with nearly 400 employees applying, according to Des Thrulby, HR director at the automotive company.