Jaguar Land Rover (JLR) is planning to cut up to 4,000 jobs in a bid to save around £1.7 billion over the next two years. The company, which is owned by Tata Motors, has been hit by a cyberattack that brought production to a halt for over a month last year, as well as soaring costs and weaker demand. The job cuts will affect mainly white-collar workers in management and research and development roles.
JLR employs 34,000 people across its three sites in England, with a further 120,000 jobs supported in the supply chain. The company has informed staff and trade union partners about the voluntary redundancy programme, which will offer salaried and management team members the opportunity to leave the business.
The UK government has signalled that it will not invest taxpayers' money to limit job losses at JLR, with Business Secretary Jonathan Reynolds stating that it is not his job to "intervene and run businesses". The company's plans for redundancies come as a blow to Andy Burnham, who recently pledged to "reindustrialise" Britain.
JLR is targeting a reduction in its break-even point to 300,000 vehicles, and needs to adapt to "evolving global market conditions". The company has strengthened its "house of brands" and transformed its product portfolio over the past three years, but now needs to make further changes to improve efficiency.
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