GKN cuts

GKN has announced that it will cut a further 1,200 jobs over the next two years, following a loss of £16m for the first half of the year.

The automotive and aerospace parts manufacturer reported underlying sales down by 31 per cent to £904m and a drop in trading profit to £23m, down £138m, as the group's end markets weakened amid the recession.

GKN’s aerospace division saw a modest increase in underlying sales of five per cent. However, automotive sales were down 41 per cent and off-highway reported a £2m trading loss, with underlying sales down by more than 50 per cent compared with the same period last year.

As a result, the company has announced that 3,600 employees will leave the group by 2011, representing a loss of 1,200 more staff than previously planned.

The cuts are in addition to an extensive restructuring programme implemented last year, but the group claims that aggressive cost reductions are starting to have an impact on the automotive division, which returned to profit in June.