Jaguar Land Rover to cut 4,000 jobs as it faces tough competition

Jaguar Land Rover is reducing its workforce by 4,000 jobs over the next two years due to challenges from Chinese competition, US tariffs, and the shift towards electric vehicles. Most of these layoffs will occur at the company's headquarters in the UK. The cuts come after a cyber-attack last year forced production to halt for over a month.

Jaguar Land Rover CEO PB Balaji assured that the company will handle the redundancy process with care, fairness, and respect. They are encouraging voluntary resignations until October 4th but are prepared to make compulsory redundancies if necessary. The company aims to save £1.7 billion in the coming two years. Jaguar Land Rover has faced competition from Chinese manufacturers, US tariffs, and a delay in launching its first electric vehicle.

Experts suggest the company should have established a US manufacturing base earlier. Former BMW director Ian Robertson believes JLR should have followed its rivals' lead in setting up a US plant. Mercedes-Benz has its plant in Tuscaloosa, and BMW's is in Spartanburg, South Carolina. Brexit has also impacted Jaguar Land Rover, despite its Slovakian factory providing some flexibility.

The company's chief treasury secretary, Emma Reynolds, expressed her support for the workforce, and the business secretary, Jonathan Reynolds, stated that he would meet with JLR executives to help mitigate job losses, though he dismissed the idea of a bailout.