Jaguar Land Rover (JLR) has announced plans to cut up to 4,000 jobs over the next two years, equivalent to around 10% of its global workforce, as the luxury carmaker responds to intense competition from cheaper Chinese rivals, a cyberattack and United States tariffs.
The British automaker, owned by India’s Tata Motors, is targeting roughly £1.7 billion (US$2.3 billion) in savings over the next two years and aims to reduce its break-even point to 300,000 vehicles.
CEO PB Balaji said JLR would also launch five new products over the next 12 months.
“The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geo-political uncertainty,” Balaji said in a statement.
“As part of this transformation, we will reduce our global workforce by around 4,000 roles over the next two years. We recognise this will be difficult news for colleagues affected, and are committed to supporting everyone with care, fairness and respect,” he added.
Shares of Tata Motors rose 0.3% on Monday, taking their gains for the year to more than 10%.
JLR’s cost-cutting programme adds to pressure on Britain’s automotive industry, following similar restructuring measures announced by luxury carmakers Aston Martin and Bentley in recent months.
UK Business and Trade Minister Jonathan Reynolds, who ruled out a government bailout for JLR over the weekend, is expected to meet company executives early this week to discuss the planned redundancies.
The pressure is not limited to British automakers. German carmaker Volkswagen announced late last week that it plans to cut a further 50,000 jobs as part of a major transformation programme, amid tariff pressures and intensifying competition from Chinese car brands.
