Jaguar Land Rover is to axe 1,000 jobs and cut production at two sites.
The UK’s largest carmaker said it would make an announcement to employees regarding its production plans for 2018/19.
It added: “In light of the continuing headwinds impacting the car industry, we are making some adjustments to our production schedules and the level of agency staff.
“We are however continuing to recruit large numbers of highly skilled engineers, graduates and apprentices as we over-proportionally invest in new products and technologies.
“We also remain committed to our UK plants in which we have invested more than £4bn since 2010 to future-proof manufacturing technologies to deliver new models.”
Production will be cut at the Castle Bromwich and Solihull sites.
The changes at Jaguar Land Rover would largely see agency staff not having their contracts renewed.
A source told the Reuters news agency that 1,000 roles would be cut.
There are 3,200 people employed at the Castle Bromwich site and a further 10,000 at Solihull.
Some staff roles will also be moved from Castle Bromwich to Solihull.