Why is Jaguar Land Rover cutting jobs? JLR opens voluntary redundancy scheme as 4,000 UK jobs could be at risk

Jaguar Land Rover (JLR) has initiated a voluntary redundancy program in a bid to cut costs and streamline its business operations. The company has informed 30,000 employees and trade union partners about the plan, which could result in up to 4,000 job losses in the UK over the next two years. JLR has not officially confirmed the figure of 4,000 job cuts but is expected to make a formal announcement soon.

The company aims to save around £1.7 billion within two years and reduce its break-even point to 300,000 vehicles. JLR is under pressure to reduce costs due to challenging global market conditions. The government is closely monitoring the situation, with Business Secretary Jonathan Reynolds having spoken to JLR's CEO, PB Balaji, and expected to meet with the company's leadership team early next week.

Unite, the trade union, has called for further government action to protect jobs in the industry, describing the current situation as "death by a thousand cuts." The redundancies come after JLR reported a significant drop in revenue and vehicle volumes, exacerbated by production disruptions caused by a major cyberattack that halted operations for five weeks in September of the previous year.