LONDON, United Kingdom – British luxury carmaker Jaguar Land Rover has announced plans to cut about 4,000 jobs globally over the next two years as it seeks to reduce costs and respond to challenging market conditions.
The Tata Motors-owned company said the reductions would be carried out through a voluntary redundancy programme as part of efforts to save £1.7 billion, equivalent to about Sh300 billion.
Most of the job losses are expected to affect salaried employees in management, research and development rather than workers on vehicle production lines.
“We need to adapt to evolving global market conditions,” a Jaguar Land Rover spokesperson said.
The company employs approximately 40,000 people globally, including about 30,000 in the United Kingdom. Its largest manufacturing facility is located in Solihull in the West Midlands.
Jaguar Land Rover has faced declining sales, rising operational costs and increasing competition from Chinese vehicle manufacturers, particularly in the electric and hybrid car market.
Chinese brands have expanded rapidly in the United Kingdom and other key markets by offering electric vehicles at lower prices. The Jaecoo 7, made by China’s Chery Automobile, has emerged as one of Britain’s bestselling vehicles.
The British carmaker has also been affected by tariffs imposed by United States President Donald Trump’s administration. The US is an important market for JLR’s high-end Range Rover and Defender models.
A major cyberattack that disrupted the company’s operations also contributed to its financial difficulties. The incident forced JLR to halt production for several weeks and affected its supply chain.
The company now wants to lower the number of vehicles it must sell to cover its costs to about 300,000 annually.
Despite the planned job reductions, Jaguar Land Rover said it would invest between £15 billion and £18 billion over the next five years in electrification, digital technology, advanced manufacturing and improvements to customer experience.
It also plans to introduce five new products over the next 12 months as it seeks to strengthen its position in the global luxury vehicle market.
JLR Chief Executive Officer PB Balaji said the measures were part of the company’s “Growth Reimagined” strategy, which is intended to reduce complexity and secure the automaker’s long-term future.
The planned cuts have raised concerns among trade unions and the British government.
Business Secretary Jonathan Reynolds is expected to hold talks with Balaji and Unite union officials over the impact on workers.
Reynolds has ruled out a government bailout but said discussions could focus on measures that would make Jaguar Land Rover more competitive over the long term.
The cuts represent one of the most significant workforce reductions announced by a British manufacturer in recent years.
