London Taxi Maker to cut 140 workers after Covid saps demand

LONDON: London Electric Vehicle Co., maker of the city’s battery-powered black cabs, plans to cut as many as 140 jobs in the UK as part of a plan to increase efficiency.

LEVC, owned by China’s Zhejiang Geely Holding Group Co., said its voluntary redundancy program was part of a series of measures to return to "sustainable profitability and growth,” after the impact of the pandemic and disruption to supply chains.

As of the end of 2021, LEVC employed about 550 workers, according to company filings. If those levels held steady, the cuts would represent about a quarter of the workforce.

A company spokesman declined to comment on the current number of employees.

The announcement by LEVC is another blow to the UK’s automotive industry, days after electric van startup Arrival SA said its plan to move production to the US would have a "sizable” effect on its UK workforce.

Earlier today, Britishvolt Ltd. said it’s mulling several options to provide "stability” after a report that the UK battery company may enter administration.

LEVC lost £118 million (RM641mil) in the year ended December 2021, according to the company filings.