Jaguar Land Rover is reportedly preparing to cut around 4,000 jobs over the next two years as it faces pressure from US tariffs, weak sales and high costs. The cuts could affect more than 10% of its workforce.
Highlights
- Jaguar Land Rover reportedly plans to cut around 4,000 jobs.
- The reductions are expected to take place over the next two years.
- The Tata Motors-owned carmaker employs about 33,000 people across the UK.
- Job cuts could amount to more than 10% of its workforce.
Jaguar Land Rover (JLR) is reportedly preparing to cut around 4,000 jobs over the next two years as the luxury carmaker faces mounting pressure from US tariffs, weaker sales and difficult global market conditions.
According to a report cited by Bloomberg, the planned reduction could affect more than 10% of the workforce at the Tata Motors-owned company. JLR employs around 33,000 people across the UK.
The report said staff were expecting an announcement about the redundancy programme, which could take place as early as Monday. However, the company had not officially confirmed the number of job cuts mentioned in the report.
The development comes as JLR works to reduce costs amid challenging conditions in the global automobile industry. The company has reportedly launched a voluntary redundancy programme as it targets about £1.7 billion, or around $2.3 billion, in savings over two years.
JLR also wants to lower its break-even point to 300,000 vehicles and simplify its business, according to the newspaper report.
Financial pressure on the company has intensified in recent months. Its pre-tax profit reportedly fell 69% to £109 million in the most recent quarter.
The company is also undergoing a major transition towards electric vehicles. Its first electric Range Rover went on sale earlier this month for £154,070, making it one of the most expensive electric SUVs in the market and nearly £50,000 more expensive than the combustion-engine equivalent, according to the report.
The high price places the vehicle well above several cheaper electric SUVs from Chinese manufacturers that are expanding in the UK market.
JLR’s restructuring comes as global automakers reassess costs, production and employment amid changing trade policies and the expensive shift towards electric mobility.
