Jaguar X-Type production will finish at the end of the year.
The Jaguar X-Type is made at the Halewood Plant on Merseyside, and Jaguar is ceasing production early to cut costs.
The X-Type had been scheduled to be built until at least mid-2010. Jaguar has sold more than 350,000 X-Types in eight years.
As a result of the axeing of the X-Type, 300 jobs will be cut at Halewood. A spokesman emphasised that the job losses would all be through voluntary redundancy only.
In addition to the job cuts, the plant is expected to be shut down for an additional three weeks, starting in September, due to poor sales.
Jaguar Land Rover CEO David Smith said, "Our industry has been especially badly hit by the recession, and the premium sector more than others. Jaguar Land Rover's retail sales have fallen by 28 per cent in the past 10 months.