Britain’s biggest automaker plans to cut almost one in 10 jobs worldwide over the next two years.
Jaguar Land Rover (JLR) is to cut around 4,000 jobs globally as part of a plan to reduce costs and strengthen its finances, the company said on Monday.
The company, which employs around 43,000 people worldwide, said the voluntary redundancy programme would focus on salaried and management roles rather than direct manufacturing jobs.
“The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geopolitical uncertainty,” chief executive PB Balaji said in a statement.
JLR said the savings would help lower the number of vehicles it needs to sell to break even to around 300,000 a year.
The company plans to invest between £15 billion and £18 billion (€17.3bn to €20.8bn) over the next five years in electrification, digital technologies, advanced manufacturing and customer experience.
It also plans to launch five new products over the next 12 months and renew its focus on North America as it targets double-digit revenue growth.
“These actions will help build a stronger, more competitive JLR for all our stakeholders,” Balaji said.
Profits and sales under pressure
JLR, which makes Range Rover, Discovery and Jaguar vehicles, has been hit by weaker sales, supply problems, US tariffs and disruption from last year’s cyberattack.
Revenue fell by 9.6% year on year to £6 billion (€6.9bn) in the three months to the end of June, while wholesale volumes declined by 9.2%.
Pre-tax profit excluding exceptional items fell by 68.9% to £109 million (€126m), according to the company’s latest financial results.
JLR attributed the decline partly to supply constraints, disruption linked to the conflict in the Middle East and the planned withdrawal of older Jaguar models.
The company is also facing growing competition from Chinese manufacturers as the global car industry shifts towards electric vehicles. However, JLR’s statement did not identify Chinese rivals as a direct reason for the job cuts, referring instead to “intense competition” more broadly.
Under a trade agreement between Britain and the United States, the first 100,000 UK-made cars exported to the US each year face a 10% tariff. Vehicles above that quota are subject to the higher US tariff rate.
JLR’s operations were also disrupted by a major cyberattack in 2025, which forced it to suspend production at its UK factories for several weeks.
The company, owned by India’s Tata Motors, makes most of its cars in factories across the UK. It employs around 34,000 people in the country, and the majority of the job cuts are expected to affect its UK operations, although the firm has not disclosed how the planned cuts will be divided between countries.
UK government rules out bailout
The announcement comes as the UK Chancellor John Healey set out plans to boost Britain’s sluggish economy and help companies cope with rising business costs.
Prime Minister Andy Burnham’s office said on Monday that while market conditions are challenging for the automotive sector globally, Britain’s government will not consider a bailout for Jaguar Land Rover.
The cuts come amid a broader shake-up of Europe’s car industry, as manufacturers contend with weaker demand, higher costs, US tariffs and growing competition from Chinese rivals.
Last week, Volkswagen agreed with unions to cut a further 50,000 jobs by the end of the decade, bringing its total planned workforce reduction to around 100,000. The German group also plans to halve its model range by 2035 and is considering alternative uses for four German plants under its Future Plan 2030.
Additional sources • AP