Jaguar Land Rover has announced plans to cut around 4,000 jobs over the next two years as it looks to save £1.7 billion in costs.
The cuts are expected to largely impact office roles, with the majority of cuts affecting its UK operations, where around 34,000 staff in total are based. Just under 10,000 are employed by the company overseas.
In a statement, Jaguar Land Rover said it will “reduce our global workforce” by around 4,000 roles in the next two years due to “significant challenges” facing the automotive industry and a need to find £1.7 billion in savings.
Chief executive PB Balaji said: “The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geo-political uncertainty. Through our Growth Reimagined strategy, JLR is moving decisively to strengthen our competitiveness and position the business for long-term success.
“Over the next 12 months, we will launch five new products, continue to leverage the strength of our brands and renew our focus on North America, amongst other markets, to help us deliver double digit revenue growth.
“At the same time, we are reducing organisational complexity and targeting £1.7 billion of savings to lower our break-even point towards 300,000 vehicles and become fitter to compete in a rapidly evolving market.
“These actions will support continued investment of £15-18 billion over the next five years in electrification, digital technologies, advanced manufacturing and enhanced customer experiences.
“As part of this transformation, we will reduce our global workforce by around 4,000 roles over the next two years. We recognise this will be difficult news for colleagues affected, and are committed to supporting everyone with care, fairness and respect.
“Together, these actions will help build a stronger, more competitive JLR for all our stakeholders.”
The job cuts come as JLR continues its recovery from a major cyber attack that forced it to halt production last year, with sales also under pressure amid intense competition from cheaper Chinese electric vehicles, while it also tackles soaring costs and the impact of US President Donald Trump’s tariffs.
Business secretary Jonathan Reynolds previously ruled out any government bailout for Jaguar Land Rover (JLR), which is Britain’s largest car manufacturer.
He has spoken to JLR chief executive PB Balaji and will meet the firm’s leadership team early this week with aims to “mitigate any job losses”.
JLR confirmed in a statement over the weekend that it is opening a voluntary redundancy programme offering salaried and management team members the opportunity to leave the business.
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