Jaguar Land Rover (JLR) has announced plans to cut around 4,000 jobs over the next two years as the company faces growing competition from Chinese automakers, US tariffs and the global shift towards electric vehicles.
The majority of the job losses are expected to affect employees at the company’s UK operations. JLR currently employs around 43,000 people worldwide.
The company has also been dealing with the impact of a major cyberattack last year, which forced it to suspend production for more than a month.
JLR’s revenue has fallen from around £29 billion to £22.9 billion over the past two years, with the company attributing pressure to factors including US tariffs and the cyberattack. The absence of a manufacturing plant in the United States has also added to the challenges facing the automaker.
Chief Executive Officer PB Balaji said the global automotive industry was experiencing significant pressure amid intense competition and continuing geopolitical uncertainty.
JLR plans to implement the job reductions primarily through a voluntary redundancy scheme, which will remain open until October 4. However, the company has warned that compulsory redundancies could be considered if necessary, with affected employees receiving less generous benefits.
Professor David Bailey of the University of Birmingham said JLR remains an important part of the UK economy, with thousands of jobs also dependent on its wider supply chain.
Trade unions and politicians have described the planned job cuts as a major blow to workers and their families.
Meanwhile, critics have blamed the UK Government’s Zero Emission Vehicle (ZEV) mandate and high energy costs for adding pressure to the domestic automotive industry.
The Government, however, has said it will provide maximum support to employees affected by the restructuring.
