Jaguar Land Rover to layoff thousands of jobs in $2.3 billion cost-saving overhaul
The luxury carmaker is targeting £1.7 billion ($2.3 billion) in savings as it faces Chinese competition, a cyberattack and U.S. tariffs.
Business Secretary Jonathan Reynolds has stated that Jaguar Land Rover (JLR) will not receive financial support to protect jobs, as the government will not stand in the way of redundancies if necessary to make the carmaker competitive. JLR announced plans to cut 4,000 jobs, with a major redundancy program expected to be confirmed.
The company is opening a voluntary redundancy program for salaried and management team members. Reynolds has spoken to JLR CEO PB Balaji and plans to meet with the leadership team this week. He emphasized that a company of JLR's size will naturally see changes in workforce size over time. Reynolds clarified that while he wants to mitigate job losses, financial support to protect jobs is not being considered, as it would amount to bailing out the company.
JLR's largest market is North America, where it has faced challenges due to Donald Trump's 10pc tariff on vehicle imports. The company is also recovering from a major cyber attack and faces intense competition from Chinese rivals. JLR employs about 30,000 people across the UK and manufactures most of its cars in factories, including in Solihull, West Midlands, and Halewood, Merseyside.
The company aims to achieve £1.7bn in savings over the next two years by simplifying its organization, improving efficiency, and building greater resilience. JLR reported a 9.6pc year-on-year fall in revenues to £6bn for the three months to June 30, driven by a 9.2pc decline in car volumes. The company has also shifted its focus to electric models as part of a strategy overhaul.
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