Boss quits digger firm after tough 18 months

THE chief executive of digger maker JCB has quit after less than 18 months in the job.

Matthew Taylor, who oversaw hundreds of redundancies, has confirmed he is to leave the Rocester-based company at the end of the year to "pursue other opportunities".

The 49-year-old joined the firm in 2006 and was promoted to the top management post in June last year.

He took over from former boss John Patterson, who was at the helm when JCB doubled its business.

During Mr Taylor's tenure, 1,600 jobs have been axed as the company continues to be hit by the downturn in the construction industry.

His exit comes less than a fortnight after JCB announced a steep fall in profits for 2008 to £39 million, compared to £187 million the previous year, as revenue declined from £2.25 billion to £2 billion.

Mr Taylor admitted at the time the company might struggle to avoid losing money in the current year.

Alan Blake, who has been a senior director with JCB for 20 years, will become the new chief executive on January 1.

GMB union convener Gordon Richardson, who represents around 4,000 workers in Staffordshire, said he was sorry to see Mr Taylor go.

He said: "The relationship between the union and Mr Taylor was always very open and honest and it is a shame that he is leaving.

"His role coincided with a downturn in the industry, which he had no control over.

"We are confident the new chief executive will be here for a long time. His credentials are well proven within the company."

"I doubt that a change in boss will make any difference to the man on the shopfloor. We are hopeful there will be no further redundancies but we can't take anything for granted."

Mr Taylor joined JCB after a career with Ford Motor Company.

JCB has not revealed his future plans but say he will be pursuing a new opportunity in the new year.

Chairman Sir Anthony Bamford said: "I want to thank Matthew for his valuable contribution to JCB and wish him every success in the future."

Mr Taylor's departure has led to a host of other changes at director level within the business.

Tim Burnhope, aged 44, will become group managing director for product development and commercial operations and Graeme Macdonald, aged 41, is to be appointed group managing director for business operations.

David Bell, who is currently managing director of JCB sales, is to be chief development officer with particular responsibility for JCB's future development in China and Brazil.

Sir Anthony said: "I am confident this new structure will strengthen JCB's reputation."