The UK automotive giant Jaguar Land Rover (JLR) announced plans to cut 4,000 jobs worldwide over the next two years in an effort to reduce costs by £1.7 billion amid pressures from cheap Chinese electric vehicles, U.S. import tariffs, and the costs of transitioning to electric vehicle production.
Jaguar Land Rover, or JLR, stated that the company intends to reduce its workforce by about 4,000 positions within the next two years to control costs and improve competitiveness against Chinese electric vehicle manufacturers.
The company aims to save £1.7 billion, approximately 75.62 billion baht, within two years to reinvest in electric vehicle technology, digital systems, and other development areas. Over the next five years, JLR plans to invest between £15 billion and £18 billion, or about 667 to 800 billion baht.
JLR CEO P.B. Balaji said the automotive industry faces major challenges from technological changes, intense competition, and geopolitical uncertainty. He emphasized that the company will treat affected employees fairly and respectfully throughout the workforce reduction process.
JLR, maker of luxury brands like Range Rover and Discovery, has seen sales and profits decline amid competition from cheaper Chinese electric vehicles, rising operational costs, and the impact of U.S. President Donald Trump's tariff policies. These tariffs impose a 10% import tax on vehicles made in the UK, increasing to 27.5% for vehicles exceeding an annual quota of 100,000 units.
JLR was also severely affected by a cyberattack last year that forced production to halt for over a month, impacting both sales and supply chains.
Owned by India’s Tata Motors, JLR employs around 43,000 people globally, with about 34,000 working in the UK. The planned job cuts are expected to mostly affect operations in the UK.
JLR said it will try to reduce employee numbers through voluntary redundancy or early retirement programs, inviting employees to apply by 4 October. However, if targets are not met, the company may proceed with involuntary layoffs with lower severance terms.
JLR’s financial results for the year ending in March showed a significant drop in sales revenue. The company cited U.S. tariffs and the cyberattack as key factors causing a roughly 20% sales decline from around £29 billion to approximately £22.9 billion. Additionally, JLR faces competition from Chinese automakers, which it once viewed as a key growth market but are now major rivals, especially in electric vehicles.
Ian Robertson, former BMW executive, criticized JLR for not starting U.S. production sooner like BMW and Mercedes-Benz, which have large U.S. factories to avoid import tariff impacts.
He also noted JLR’s late entry into the electric vehicle market. The company launched the fully electric I-PACE SUV in 2018 but took several years before introducing new electric models. The recently announced electric Range Rover will be JLR’s first major electric vehicle launch since the I-PACE.
The job cut announcement comes as the UK government seeks to stimulate a sluggish economy and support businesses facing rising costs. However, a spokesman for the UK Prime Minister stated that while the government understands the concerns of affected employees, families, and communities, it has no plans to use taxpayers’ money to bailout JLR.
Liam Byrne, chair of the UK Parliament’s Business and Trade Committee, called the job cuts a “major blow” to workers, families, and communities in the West Midlands, a key hub of the UK automotive industry. He urged the government to implement measures to help displaced workers find new jobs quickly. Unite, one of the UK’s largest unions, said it would urgently seek clarification from JLR and called on both JLR and the government to explore all options to mitigate the employment impact.
JLR’s announcement comes just a week after Volkswagen, Germany’s largest automaker, unveiled a major cost-cutting plan that includes cutting 50,000 jobs, halving its model lineup, and closing four factories in Germany to cope with competition from China and U.S. tariffs.
. . .BBC/Associated Press