Jaguar Land Rover is preparing to cut up to 4,000 jobs over the next two years as Britain’s largest carmaker battles soaring costs, falling sales, tougher competition from Chinese electric-vehicle manufacturers and US tariffs.
The Tata Motors-owned group has opened a voluntary redundancy programme for salaried and management staff, although it has not confirmed the final number of posts affected.
The planned reductions are part of a drive to save about £1.7 billion over two years, simplify the business and lower the number of vehicles it needs to sell to break even. JLR is aiming to bring that threshold down towards 300,000 cars.
Jaguar Land Rover faces falling sales and rising costs
The company’s latest results underline the pressure facing the luxury vehicle maker. Revenue fell by almost 10 per cent in its most recent quarter, while pre-tax profit dropped by 69 per cent to £109 million.
JLR has also been hit by weaker demand in China, a key market for the group, while cheaper Chinese electric vehicles are increasing competition across the UK and other major markets.
Its North American business has come under additional strain from US import tariffs. The company has previously warned that the duties were adding to costs and disrupting its plans for shipments into one of its most important markets.
JLR’s operations were further damaged by a cyber attack last year that halted production for several weeks and caused significant disruption across its manufacturing and supply networks.
The company employs more than 30,000 people in the UK, with major operations in the West Midlands, including plants in Solihull and Wolverhampton. The scale and location of the proposed redundancies have not yet been set out.
JLR said the voluntary scheme would help it respond to changing conditions in the global automotive market and build a more resilient business. It is continuing to invest in new electric models, including the Range Rover Electric and a forthcoming all-electric Jaguar.
The job reductions come as the carmaker attempts to balance that investment with weaker demand, higher production costs and the rapid shift in the industry towards electric vehicles.
