Jaguar Land Rover Cuts 4,000 Jobs as Crisis Deepens
Jaguar Land Rover has confirmed plans to cut about 4,000 jobs in Britain over two years as the carmaker battles mounting financial and market pressures.
The planned reduction represents about 12 per cent of its 34,000-strong UK workforce.
The company said the restructuring is expected to save £1.7 billion and strengthen its competitiveness in the global automotive market.
Jaguar Land Rover is facing intense competition, US tariffs, technological changes and the continuing financial impact of last year’s cyber-attack.
The cyber-attack forced the company to shut down its factories and eventually cost about £200 million.
JLR’s pre-tax profit subsequently plunged to £14 million, compared with £2.5 billion recorded the previous year.
Chief executive PB Balaji said the automotive industry was experiencing intense competition, rapid technological change and continuing geopolitical uncertainty.
He said the company was taking decisive steps through its Growth Reimagined strategy to improve its competitiveness and secure long-term growth.
“As part of this transformation, we will reduce our global workforce by around 4,000 roles over the next two years,” Balaji said.
He acknowledged that the decision would be difficult for affected employees and pledged to support them throughout the process.
The job reductions are expected to fall mainly on senior management and research and development positions.
Production workers on the factory floor are expected to be less affected by the planned restructuring.
The company is expected to prioritise voluntary redundancies before considering compulsory job losses.
Unite general secretary Sharon Graham is expected to push for retraining and redeployment instead of compulsory redundancies.
Graham is scheduled to meet Balaji and Business Secretary Jonathan Reynolds on Tuesday for discussions about the proposed cuts.
The government has ruled out using taxpayers’ money to prevent Jaguar Land Rover from proceeding with the redundancies.
Reynolds has, however, indicated that ministers could consider other measures to support Britain’s automotive sector.
The government previously agreed to guarantee a £1.5 billion loan facility for Jaguar Land Rover following last year’s cyber-attack.
The company has not accessed the facility.
Jaguar Land Rover has also been affected by US trade tariffs imposed under President Donald Trump.
The tariffs initially reached 27.5 per cent on British vehicles before falling to 10 per cent following a UK-US trade agreement.
The agreement was announced at Jaguar Land Rover’s Solihull plant.
The tariffs have affected sales of models including the Range Rover and Defender as the company expands its presence in the American market.
Balaji said the restructuring would reduce organisational complexity and lower the company’s break-even point.
He said Jaguar Land Rover would break even at about 300,000 vehicle sales annually after the changes.
The company is also facing increasing competition from Chinese manufacturers expanding rapidly across Britain and Europe.
Chinese companies including BYD and Chery have strengthened their presence and established manufacturing operations in European markets.
Jaguar Land Rover’s announcement follows Volkswagen’s decision to pursue another major round of job reductions.
The German carmaker said last week that it planned to eliminate another 50,000 jobs as part of its turnaround strategy.
The developments highlight the growing pressure facing major global carmakers as they contend with weak markets, tariffs, technological shifts and intensifying competition.
