Jaguar Land Rover says it will not be renewing the contracts of 1,000 temporary workers at two factories.
The UK’s biggest carmaker, owned by India’s Tata Motors, blamed “continuing headwinds” affecting the car industry.
It said it was continuing to recruit large numbers of engineers and apprentices and it remained committed to its UK plants.
Earlier this year, it said it would cut production amid uncertainty over Brexit and changes to taxes on diesel cars.