Jaguar Land Rover plans to cut more than 500 jobs at its Halewood plant in Merseyside by 2021 as part of a restructuring of its European manufacturing operation.

On Monday Jaguar Land Rover announced another closure of production at the West Derby plant in West Yorkshire, which will see 700 jobs cut as the government presses carmakers to build more plug-in electric cars.

These latest announcements come just days after Aston Martin cut 120 jobs at its Walsall site. Both companies blamed Brexit for the expected drop in demand for cars.

Jaguar Land Rover said at the Merseyside plant that a further 400 jobs will go by 2022 as part of the restructuring. The company, owned by India’s Tata Motors, first announced plans to put Halewood on a three-shift basis in 2016 to help save costs amid a downturn in the global car market.

“Following our announcement in October 2016 that Halewood will increase production to three shifts a day from the summer of 2017, we have now concluded a further assessment of our production and investment plans. Our ultimate aim is to make Halewood one of the most efficient European manufacturing sites,” said Halewood’s general manager, Danny Farley.

Jaguar Land Rover employs 9,500 people at Halewood, less than half the annual workforce at the West Derby plant.

The looming job losses are at odds with the Conservative government’s vision for the car industry. Theresa May has indicated that carmakers can expect favourable treatment in future Brexit negotiations to protect an industry which employs more than 1m people.