Thousands of workers at Jaguar Land Rover (JLR) will be offered voluntary redundancies as the luxury car manufacturer faces competitive pressure from cheaper Chinese brands, a cyberattack, and tariffs imposed by U.S. President Donald Trump. The company, owned by Tata Motors, plans to cut up to 4,000 jobs over the next two years, according to a report from The Times.
A JLR spokesperson confirmed the launch of a voluntary redundancy program for salaried and management team members, but did not comment on the expected job losses. The company aims to save around £1.7 billion ($2.3 billion) and reduce its break-even point to 300,000 vehicles in response to changing global market conditions. Shares of Tata Motors fell 0.7% on the day, though the stock is up approximately 9.5% year-to-date.
The cost-cutting measures at JLR add more pressure on British car manufacturers, following similar reductions at Aston Martin and Bentley. U.K. Business and Trade Minister Jonathan Reynolds has ruled out any bailouts for the company, but he plans to meet with JLR executives regarding redundancy measures soon. The government has taken steps to support the UK automotive industry, including reducing electricity bills and providing funding for electric vehicle development. Meanwhile, Volkswagen is also planning to cut 50,000 jobs due to similar competitive challenges.
