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

Jaguar Land Rover has announced plans to cut around 4,000 roles over the next two years, citing geopolitical uncertainty, US tariffs and the aftermath of a cyberattack. The voluntary redundancy scheme targets management roles, with most cuts expected in the UK.

LONDON: Jaguar Land Rover said on Monday (Sep 7) that it would cut around 4,000 roles over the next two years, representing roughly ten per cent of its global workforce, in the latest blow to Europe's automobile industry. The voluntary redundancy scheme was announced days after Volkswagen revealed 50,000 new job cuts, and follows months of disruption from a cyberattack on the British luxury carmaker and US President Donald Trump's sector-wide tariffs.

JLR's chief executive PB Balaji said in a statement: "The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geopolitical uncertainty." The company also said it would target cost savings of £1.7 billion (US$2.3 billion). "Over the next 12 months, we will launch five new products, continue to leverage the strength of our brands and renew our focus on North America, amongst other markets, to help us deliver double digit revenue growth," Balaji added.

The vast majority of JLR's roughly 34,000 employees are based in the UK. In an earlier statement on Monday, the company identified management roles as those at risk, while local media reported that most of the cuts would be in the UK. UK Business minister Jonathan Reynolds is scheduled to meet with JLR executives this week to discuss the job losses.

The restructuring comes a year after a major cyberattack halted JLR's production in Britain and severely affected its finances. Owned by India's Tata Motors, JLR was forced to halt production for more than a month, costing the company £260 million, according to its latest estimate. Hit also by US tariffs, the carmaker posted a loss of £244 million for its fiscal year ending in March, compared with a net profit of £1.8 billion in 2024-25.

"We must further simplify our organisation, improve efficiency, and build greater resilience," JLR said on Monday. Seeking to move on from the cyberattack, the company last week opened orders for its new fully electric Range Rover. Last week, Volkswagen said its management and unions had agreed to axe a total of 100,000 jobs by the end of the decade, the biggest-ever restructuring in the global auto industry.