Jaguar Land Rover Cuts 4,000 Jobs Amid Cost-Cutting Drive

British carmaker Jaguar Land Rover (JLR) plans to cut approximately 4,000 jobs, representing about 10% of its global workforce, over the next two years.

The Tata Motors-owned company has opened a voluntary redundancy program for salaried and management staff as part of a cost-cutting campaign targeting roughly £1.7 billion ($2.3 billion) in savings. JLR aims to lower its global operational break-even threshold to 300,000 vehicles annually. CEO PB Balaji stated that the automotive industry faces challenges, including technological change, intense competition, and geopolitical uncertainty.

The company plans to launch five new products over the next 12 months and renew its focus on North America. JLR faces mounting financial and operational pressures from international markets, including a 10% tariff rate on vehicle imports into the U.S., intensifying competition from lower-cost Chinese electric vehicle imports, and a major cyberattack late last year.

The cyberattack temporarily halted production across several international facilities, contributing to an estimated $2.5 billion (£1.9 billion) drag on the broader British economy. UK Business Secretary Jonathan Reynolds confirmed he would meet with JLR Chief Executive Officer PB Balaji and representatives from Unite the Union. Reynolds ruled out a bailout for the company over the weekend.

A government spokesperson acknowledged the uncertain time for affected workers and highlighted government actions to support the UK automotive industry, including lowering electricity bills and providing £4 billion in capital and R&D funding.