The company has announced 398 redundancies, consisting of 297 shopfloor jobs and 101 staff posts.
JCB blamed "the extreme deterioration in business levels and confidence around the world" for the cuts.
The announcement comes after thousands of JCB workers last month voted to accept a £50-a-week pay cut in a bid to ward off job cuts.
The company said the global credit crunch had led to a "significant reduction" in orders, particularly from previously buoyant markets including Russia and Central and Eastern Europe.
JCB chief executive Matthew Taylor said further job cuts could not be ruled out if the economic situation deteriorated further in the coming months.
Explaining the latest redundancies, he said: "The level of business we are doing out in the markets right around the world has dropped very dramatically after the torrid financial times in September.
"Our order cover has dropped significantly.
Mr Taylor said his staff were "very worried" following the announcement.
Last month JCB revealed that it needed to cut its shopfloor workforce by 510 at UK factories but the figure was reduced by 332 after GMB members voted by a two-thirds majority in favour of a shorter working week.
The GMB union said around 2,500 of its members at seven JCB plants in England and Wales had agreed to go on a four-day week for 13 weeks to help the company cope with the economic downturn.