The company has briefed employees that up to 400 staff positions are now at risk in the UK.
JCB CEO Graeme Macdonald said: "Market conditions in the construction equipment sector have been difficult for some time, but they have worsened quite rapidly in recent weeks.
"The situation is not about to improve, certainly not in the short term, so we now need to take difficult but decisive actions to align overheads to lower sales forecasts. Regrettably, this will result in up to 400 staff positions becoming redundant across our UK businesses."
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GMB, the union for workers at JCB, said that it would do everything it can during the consultations to avoid compulsory redundancies and to mitigate the impact on the workforce says GMB.
Gordon Richardson, GMB senior shop steward at JCB, said: "These up to 400 staff job losses are the first ripple from the downturn in world markets including China impacting on the UK economy.
This huge wave of uncertainty is likely to lead to further job losses in the sectors that trade with the rest of the world.
GMB will do everything we can during the consultations to avoid compulsory redundancies and to mitigate the impact on the workforce."
(MH/CD)
