Jaguar Land Rover (JLR) has announced plans to implement a voluntary redundancy program, aiming to cut up to 4,000 jobs annually as part of a broader strategy to save £1.7 billion over the next two years. The move comes as the British carmaker faces a combination of soaring costs, declining sales, and the impact of trade tariffs.
The voluntary redundancy program will be offered to salaried and management employees. A company spokesperson stated that the initiative is part of the next phase of JLR's strategy, which requires adapting to evolving global market conditions. The goal is to simplify the organization, improve efficiency, and build greater resilience. JLR employs 34,000 people across its three sites in England and supports an additional 120,000 jobs within its supply chain.
This announcement follows a significant cyber attack approximately one year ago that halted JLR's production for over a month, resulting in a 27% drop in output and an estimated loss of £1.9 billion. The company also cited the impact of the United States' 10% tariff on UK car imports, which has affected sales in North America, a market representing 29% of JLR's global sales. Other automakers have also made staffing adjustments in response to similar economic pressures.
This situation has drawn concern from unions. Sharon Graham, general secretary of the Unite Union, has pledged to hold urgent talks with the business secretary and JLR's management. Graham highlighted that the automotive industry has been facing a 'perfect storm' for years, attributing challenges to under-investment, sustainability mandates, and high industrial energy costs. The union emphasized the need for further government action to mitigate job losses and support affected workers.