Jaguar Land Rover (JLR) will cut production and not renew the contracts of around 1,000 temporary workers at its Solihull plant, a source has told the Press Association.
The UK’s biggest carmaker confirmed it is making adjustments due to “continuing headwinds impacting the car industry”.
It will announce its plans for 2018/19 to its workforce on Monday.
New car sales fell 5.7% in the UK last year amid falling business and consumer confidence.
The automotive industry has warned of the impact of Brexit and a fall in demand for diesel cars amid concern over emissions.
JLR said in a statement: “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 invested in new products and technologies.
“We also remain committed to our UK plants in which we have invested more than £4 billion since 2010 to future proof manufacturing technologies to deliver new models.”