Jaguar Land Rover has confirmed plans to shed 1,000 jobs as it cuts production at two sites.
Britain’s biggest carmaker said it had been informing employees about the decision on Monday – after reports had emerged last week.
A spokesman confirmed that 1,000 agency staff at Solihull were not having their contracts renewed.
Meanwhile, 362 permanent staff will be transferred from another West Midlands site, at Castle Bromwich, to Solihull.
JLR said in a statement on Friday that it was making adjustments to production schedules and the levels of agency staff “in light of the continuing headwinds impacting the car industry”.
Industry figures show continuing declines in UK car production mainly thanks to steep falls in domestic demand, while there are also concerns about how exports may be affected by any trade barriers which could be thrown up by Brexit.
JLR said in its statement that it was continuing to recruit large numbers of highly skilled engineers, graduates and apprentices and remained committed to its UK plants.
There are currently 3,200 people employed at Castle Bromwich and 10,000 at Solihull.
Jaguar sales have fallen 26% so far this year and Land Rover dropped 20%.
JLR chief executive Ralf Speth has pointed to weakness in the economy as well as a drop in demand for diesel and tax changes for creating a “reaction in the consumer base”.
In January, the firm said it would temporarily reduce production at another British plant, at Halewood.
Asked in March if there could be further UK production cuts, Dr Speth told Sky News: “It’s quite clear that if there’s no demand, then we have to adapt our production levels.
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“It’s unfortunate that in the UK demand is not there anymore, and the UK is our home market.
“So in our home market, it’s important that the economy can grow and that we have free opportunity to sell our cars.”