Jaguar Land Rover (JLR) announced on Monday that it will eliminate approximately 4,000 positions globally over the next two years as part of a significant restructuring plan aimed at reducing costs. The layoffs represent roughly 10% of the luxury automaker’s workforce.
Tata Motors-owned JLR stated it targets £1.7 billion ($2.3 billion) in savings while aiming to lower its break-even point to 300,000 vehicles annually. The company also plans to introduce five new products within the next 12 months.
CEO PB Balaji cited intense competition from Chinese rivals, ongoing geopolitical uncertainty, and technological shifts as primary drivers for the difficult decision. “We recognize this will be difficult news for colleagues affected, and are committed to supporting everyone with care, fairness and respect,” Balaji said.
The move follows a series of challenges for the British manufacturer, including a costly cyberattack and the impact of U.S. tariffs imposed under the Trump administration, which previously led to a pause in vehicle shipments to America.
Shares of parent company Tata Motors rose 0.3% following the announcement, with the Mumbai-listed stock gaining more than 10% year-to-date.
The restructuring adds pressure to the UK automotive sector and serves as a fresh test for Prime Minister Andy Burnham’s policies. It comes after similar job-cut announcements by other British luxury brands Aston Martin and Bentley. UK Business and Trade Minister Jonathan Reynolds, who recently ruled out a government bailout, is expected to meet with JLR executives this week to discuss the redundancies.
A government spokesperson expressed understanding for the “uncertain and concerning time” for affected workers and highlighted existing support measures, including lower electricity bills for manufacturers and funding for zero-emission vehicle production.
The cost-cutting trend extends across Europe, with German auto giant Volkswagen announcing last week that it plans to slash an additional 50,000 jobs as part of its own transformation strategy amid similar competitive and tariff pressures.
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