Tata Motors-owned Jaguar Land Rover (JLR) is cutting around 4,000 jobs in the United Kingdom over the next two years. The company will announce the voluntary redundancy program on Monday, according to UK newspaper ‘The Times’. Rising costs, declining sales, and US President Donald Trump’s 10 percent tariff on UK car imports have forced JLR to restructure its workforce.
Layoffs Across Multiple UK Facilities
JLR currently employs approximately 34,000 people across three locations in West Midlands and one facility at Halewood in Merseyside. The company also supports an additional 120,000 jobs through its British supply chain. The voluntary redundancy program will target salaried employees and management team members. JLR informed its trade union partners and colleagues about the restructuring plan ahead of the official announcement.
US Tariffs and North America Dependence
North America accounts for 29 percent of JLR’s total sales, making it the company’s single largest market. Trump’s 10 percent tariff on UK car imports has directly hit JLR’s profitability and exports to the US. The luxury automaker also faced a major cyber attack last year that disrupted its global operations for several months. These twin challenges have compounded the pressure on the Tata Group-owned brand.
Cost Savings Plan and Sales Dip
JLR is aiming to save approximately 1.7 billion euros over the next two years through this restructuring. In the June quarter, JLR’s wholesale sales fell 9.2 percent year-on-year due to temporary supply disruptions. These included a fire at a key supplier’s facility, ongoing conflict in West Asia affecting supply chains, and the gradual phase-out of Jaguar production. The company told ‘The Times’ that it has strengthened its house of brands over the last three years and transformed its product portfolio for the next generation.
Shift to Electric Vehicles
Despite the challenges, JLR called this an exciting year as it expands into battery electric vehicles. The company plans to launch four new BEV products in the coming months to strengthen its electric portfolio. The job cuts come as part of a broader strategy to adapt to changing global market conditions while investing in future technologies.
