Jaguar Land Rover is set to lay off nearly 4,000 employees till 2028 amid mounting pressure from Chinese competition, US tariffs and the global shift toward electric vehicles.
The substantial amount of job cuts will mainly affect employees at JLR’s UK headquarters and are likely to generate savings of nearly £1.7 billion over the next two years.
Currently, Jaguar Land Rover has 43,000 employees serving at the company all across the globe. The company is initially seeking voluntary redundancies, with applications open until 4 October.
Jaguar Land Rover to cut 4,000 jobs
JLR said compulsory redundancies could follow if enough employees do not volunteer, with affected workers receiving less generous terms.
Chief executive PB Balaji said the firm was "committed to supporting everyone with care, fairness and respect" through the redundancy process.”
"The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geo-political uncertainty," Balaji added.
The move follows a highly challenging time for JLR. A cyberattack last year forced the company to discontinue production for over a month, aggravating the financial issues.
Notably, JLR continues to face struggles against Chinese automakers and the impact of US tariffs, as it doesn’t have any manufacturing plant in the US, leaving it more exposed to trade costs.
The company reported that sales fell by about a fifth to £22.9 billion in the year ending March, compared with £29 billion two years earlier. It cited US tariffs and the cyberattack as major factors behind the decline.
Jaguar Land Rover reported that sales saw a sharp decline of nearly a fifth to £22.9 billion in the year ending March, in contrast to £29 billion two years earlier.
It's worth mentioning JLR has been experiencing massive backlash over its transition to electric vehicles, with industry experts arguing that it was slower in contrast to rivals to launch electric models.
The UK government stated it would support affected employees but ruled out a bailout, while unions called for urgent action to secure jobs and communities across the West Midlands.
