However it's not all bad news as the company can keep all employees with no compulsory redundancies expected. Additionally there will be 800 new positions available at the Halewood plant on Merseyside due to the production of a new Range Rover.
Currently there are 1,800 at Halewood, 2,000 in Castle Bromwich and 5,000 workers in Solihull.
Jaguar Land Rover also outlined details of its new business strategy to become a global profitable player and also deal with the challenges of climate change.
"The plan includes decisive actions to see through the next 12 to 18 months as markets recover and positions the company to grow and prosper in the future. It includes a new and expanded range of products and environmental technology, delivered through streamlined and competitive costs and a new manufacturing strategy. We are confident that a new, more efficient and competitive structure combined with future investment will unlock the true potential of this business. The company has already responded to the downturn over the past year by cutting production by 100,000, axing 2,500 jobs, freezing pay and cancelling bonuses. This was not enough to offset the full magnitude of the downturn and the company swung from profit in 2007 to significant losses over the past 12 months" the company said.
The two British brands are expected to swing back into profitability over the next few years with a whole range of new models on the way.