By Aliyah Busari
Jaguar Land Rover
The UK’s biggest car firm, Jaguar Land Rover (JLR) has announced that it will be cutting 4,500 jobs this year. The majority of cuts will be from the 40,000 workforce in the UK, across almost all levels of the business, and is on top of the 1,500 jobs that were cut last year. JLR has faced several challenges lately as it revealed total annual sales were down by 4.6% from 2017. JLR has faced several challenges lately, including a significant decline in demand for diesel vehicles. Further pressure has come from a slump in car sales in China. As the market conditions in both China and Europe began to decrease, the sales of Land Rover models fell to 411, 875 – a decrease of 6.9% from the year before. JLR has stated that Brexit will undoubtedly have an effect on the UK market for global manufacturing. Furthermore, the car company has warned that a no deal Brexit will cause the company over £1.2bn in profit each year. With the prospect of a no deal Brexit looking increasingly likely, this may spell trouble for the car manufacturing company.
In a tumultuous period for the British High Street, Greggs has succeeded in turning its sales around. It has been quite the comeback for the bakery chain who issued a profit warning in spring after freezing weather dented their sales. The launch of their vegan sausage roll propelled Greggs to an all-time high with the CEO unveiling a 5.2% increase in sales. The clever marketing campaign surrounding their new product was labelled “a master class in public relations” by magazine ‘PR Week’. Its video campaign propelled Gregg’s share prices, and last week they were up 16% valuing the chain at more than £200 million.
Are universities ‘on the brink of a credit crunch’?
Universities have been warned that they could be heading towards a ‘credit crunch’ after a review found that the debt the sector has taken on continues to rise. Over the last decade, borrowing by universities has tripled and now the debt stands at £10.8 billion. The battle between universities to attract students has intensified and they have spent more to improve campuses to encourage new student applications. Some universities have also started lowering grade requirements and offering unconditional offers to students before they receive their A Levels in the aim to boost numbers.
In a time of uncertainty for higher education, banks may be less inclined to lend to universities. Historically, they have had excellent credit ratings, so would be able to access capital with low interest rates. Now this may not be the case, and if admissions at universities with high levels of debt start dipping, it could start to become a problem for the sector as a whole.