Jaguar Land Rover to cut 4,000 jobs as European car sector struggles

Jaguar Land Rover (JLR) announced plans to eliminate around 4,000 positions over the following two years, accounting for roughly 10% of its worldwide workforce. This decision follows a loss of £244 million for its fiscal year ending in March, a sharp contrast to the £1.8 billion net profit recorded in the 2024-2025 period. The reduction in jobs comes amidst a challenging period for the European car industry, with competing pressures from Chinese manufacturers, a cyberattack, and the transition towards electric vehicles.

JLR's chief executive, PB Balaji, emphasized the company's intent to reduce costs by £1.7 billion as part of its restructuring efforts. Balaji also highlighted the introduction of five new products and a renewed focus on North America to achieve double-digit revenue growth within the next year. The majority of JLR's employees, approximately 34,000, are based in the UK.

Business Minister Jonathan Reynolds is set to meet with JLR executives to discuss the job losses. This restructuring follows a major cyberattack in 2023 that halted production in Britain and impacted JLR's finances. The company is also grappling with US tariffs and is preparing to launch its new fully electric Range Rover. JLR's decision to downsize comes a year after the cyberattack, as the company seeks to enhance its organization, efficiency, and resilience.