Jaguar Land Rover (JLR) plans to cut around 4,000 jobs over the next two years as it seeks to save £1.7 billion, citing intense competition from Chinese rivals, the impact of a cyberattack, and US tariffs. CEO PB Balaji stated the company is committed to supporting affected employees with fairness and respect. The cuts, expected to affect salaried and management roles, will be implemented through a voluntary redundancy program, with compulsory redundancies possible if the target isn’t met. JLR is also investing £15-18 billion over five years in electrification and digital technologies.
The job cuts follow a cyberattack last year that halted production for over a month and contributed to a significant drop in profits – down from £2.5 billion to just £14 million. The company has also been hurt by tariffs imposed by former US President Donald Trump, and increased competition from Chinese automakers. Former BMW director Ian Robertson suggested JLR should have established manufacturing in the US, similar to BMW and Mercedes-Benz.
Business Secretary Jonathan Reynolds has ruled out a bailout for JLR, but will meet with company executives and union leaders to discuss mitigating job losses. Unite General Secretary Sharon Graham has called for retraining and redeployment over compulsory redundancies, citing underinvestment, high energy costs, and the Zero Emission Vehicle mandate as factors impacting the UK automotive industry. Shares of JLR’s parent company, Tata Motors, fell 0.7% on Monday. CNBC reported the savings target equates to $2.3 billion, while JLR aims to reduce its break-even point to 300,000 vehicles.
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