Jaguar Land Rover plans to cut about 4,000 jobs globally over the next two years as part of a £1.7 billion cost saving programme. The restructuring comes as the automaker faces weaker vehicle volumes, U.S. tariffs and growing competition from Chinese manufacturers, while recent financial results showed a sharp decline in quarterly profit.
Jaguar Land Rover plans to reduce its global workforce by about 4,000 roles over the next two years as the luxury carmaker seeks £1.7 billion in cost savings amid weaker volumes, tariffs and intensifying competition in the global auto market.
The restructuring comes as Jaguar Land Rover works to lower its break-even production level toward 300,000 vehicles while continuing investment in new models and its electrification strategy.
Jaguar Land Rover is planning to cut approximately 4,000 jobs worldwide over the next two years as part of a broader cost reduction programme designed to improve the automaker’s competitiveness, Reuters reported on Monday.
The job reductions are part of JLR’s wider “Enterprise Missions” programme, under which the company is targeting £1.7 billion in savings over two years. JLR said in June that the programme would focus on areas including material costs, warranty expenses and fixed costs, with the goal of reducing its break-even volume toward 300,000 vehicles.
JLR has also launched a voluntary redundancy programme as the company responds to challenging conditions affecting the automotive industry in Britain and Europe. Reuters reported that the company employs about 30,000 people in Britain.
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The restructuring comes as Jaguar Land Rover faces pressure from changing global market conditions, including higher tariffs and growing competition from Chinese automakers. The company is also seeking to strengthen its position in North America, which it has identified as a key growth market.
JLR’s latest financial results underline the pressure on the business. Revenue for the three months ended June 30 fell 9.6% year-on-year to £6.0 billion, while wholesale volumes declined 9.2% to 79,300 vehicles. Profit before tax and exceptional items fell 68.9% to £109 million from £351 million a year earlier.
The company nevertheless remained profitable during the quarter. Profit after tax was £66 million, although free cash flow was negative £998 million. JLR reported total liquidity of £5.9 billion at June 30.
JLR said its cost reduction programme would be accompanied by continued investment in future products. The company plans to introduce new models including the Range Rover Electric, Range Rover Sport Electric and Jaguar Type 01, while maintaining its previously announced £18 billion investment programme over five years from fiscal 2024.
The planned workforce reduction adds to broader restructuring across the European automotive industry, where manufacturers are attempting to reduce costs and adjust production capacity in response to weaker demand, tariffs and competition from Chinese vehicle makers.
JLR’s latest move is expected to be discussed with the UK government, with Business Minister Jonathan Reynolds due to meet JLR’s chief executive this week over concerns surrounding the planned job reductions, according to Reuters.
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