Jaguar Land Rover (JLR) is preparing to cut up to 4,000 jobs over the next two years as part of a restructuring plan aimed at saving £1.7 billion. The decision to offer voluntary redundancies to salaried and management team members follows a sharp decline in the British car manufacturer's profits, significantly impacted by a cyber-attack, US tariffs, and challenging global market conditions.
The company, owned by the Indian conglomerate Tata Motors, informed its workforce and union representatives on Saturday that it would initiate a voluntary redundancy programme. While JLR has not yet confirmed the exact number of positions to be cut, reports from the BBC and Sunday Times suggest it could reach up to 4,000 over a two-year period.
Unite’s general secretary, Sharon Graham, is scheduled to meet JLR’s chief executive, PB Balaji, alongside Business Secretary Jonathan Reynolds next week. This meeting follows intensive weekend discussions aimed at mitigating the scale of the job losses.
JLR employs approximately 44,000 people globally, with around 30,000 based in the UK. The majority of these UK employees work at 14 plants predominantly located across the West Midlands, where the company stands as one of the region's largest employers.
The announcement comes as unwelcome news for the prime minister, Andy Burnham, who has previously stated commitments to "safeguard sovereign manufacturing" and promote the reindustrialisation of Britain. His predecessor, Keir Starmer, had previously indicated that Labour would underwrite a £1.5 billion loan guarantee to JLR following a significant cyber-attack last year.
The cyber-attack resulted in a 27 per cent drop in overall production and is estimated to have cost the company approximately £200 million. This incident was a key factor contributing to JLR reporting a pre-tax profit of just £14 million, a substantial decrease from £2.5 billion in the preceding year.
Further pressures stemmed from tariffs imposed on vehicles imported into the US market. These tariffs, which former US President Donald Trump raised to 25 per cent before a deal for 10 per cent for the UK was agreed, particularly affected JLR's efforts to expand its luxury car sales in the US. This contributed to a decline in the company’s retail and wholesale volumes – sales conducted via dealerships – which fell by about 70,000 and 90,000 units respectively.
In the company’s annual report published in May, Mr Balaji highlighted the broader challenges facing the automotive industry. He stated, “These challenges arrived with the global automotive industry already under continued pressure from cost inflation, slower-than-expected uptake of electric vehicles, and the deterioration of market conditions in China.”
In an effort to adapt to evolving market demands, the carmaker recently launched its first electric Range Rover this week. The new luxury SUV, aimed at climate-conscious consumers, has a starting price of £154,070.
