4,000 jobs to go as Jaguar Land Rover cuts costs
Tata Motors targets lower costs and a 300,000-vehicle break-even point at JLR, which still plans five new models over the next year
- Jaguar Land Rover plans to eliminate approximately 4,000 jobs globally, representing about 10% of its workforce, over the next two years.
- The job cuts are part of a larger cost-saving initiative aiming to reduce expenses by £1.7 billion.
- This restructuring is a response to several pressures, including intensifying competition from Chinese electric vehicle makers, US tariffs, and the effects of a cyberattack.
- Despite the cuts, the company will continue to invest in growth and plans to launch five new models within the next year.
Jaguar Land Rover (JLR) plans to eliminate about 4,000 jobs worldwide over the next two years, cutting roughly 10% of its workforce as it seeks £1.7 billion in savings amid intensifying competition from Chinese electric vehicle makers.
The British luxury carmaker is also dealing with the effects of a cyberattack and US tariffs on British vehicle imports under President Donald Trump.
Indian parent company Tata Motors said the restructuring would reduce costs by approximately £1.7 billion, equivalent to US$2.3 billion, over two years. It also aims to lower JLR’s break-even production volume to 300,000 vehicles, giving the business greater financial flexibility.
Chief executive PB Balaji said JLR would continue investing in engineering innovation and pursuing growth, with five new models scheduled for launch over the next year.
New models planned alongside workforce reductions
Balaji said technological change, intense competition and prolonged geopolitical uncertainty were creating significant challenges for the automotive industry.
“As part of this transformation, we need to reduce our workforce by approximately 4,000 roles globally over the next two years,” he said in a statement.
“We recognise that this is difficult news for affected colleagues, and we will support everyone with care, fairness and respect.”
Tata Motors shares rose 0.3% in Mumbai trading on Monday (September 7), taking their gain since the start of the year to more than 10%.
UK rules out bailout ahead of worker-support talks
The cuts present an economic challenge for Prime Minister Andy Burnham’s government and follow cost-control measures at fellow British luxury carmakers Aston Martin and Bentley.
Business and Trade Secretary Jonathan Reynolds ruled out using public money to bail out the company. He was scheduled to meet senior JLR executives early this week to assess the situation and discuss ways to lessen the impact on employees.
In an emailed statement to CNBC, a government spokesperson expressed concern for affected workers and their families, while pointing to existing support for the automotive sector.
That support includes:
- Lower energy costs: Reducing electricity costs for domestic factories and automotive manufacturing.
- Research and development: More than £4 billion in funding to accelerate the development of zero-emission vehicles.
- Electric vehicle adoption: More than £2 billion in subsidies to help consumers switch to electric cars.
Carmakers elsewhere in Europe are also reducing their workforces as they face higher energy costs, US tariff barriers and expanding competition from Chinese electric vehicle manufacturers.
