The company blamed a global downturn for the cuts.
JCB is predicting a 20 per cent reduction in its production schedule for the rest of the year.
Chief executive Matthew Taylor blamed a global credit crisis and rising raw materials costs for the cuts.
He said: “Many JCB dealers around the world are experiencing lower sales rates because of reduced customer activity, mainly in the house building and commercial property sectors, and this has a direct impact on our machine build programme.”
But Mr Taylor said the company is experiencing strong markets in Russia, Brazil and the Middle East.
JCB is consulting the GMB and staff representatives for each of its individual business units affected by the redundancies.