Jaguar Land Rover (JLR) is set to cut around 4,000 jobs worldwide over the next two years as the British carmaker seeks to reduce costs, simplify its operations and strengthen its finances.
The company, which employs about 43,000 people globally, said the voluntary redundancy programme would mainly affect salaried and management positions rather than workers directly involved in vehicle production.
JLR expects the restructuring to generate about £1.7 billion in savings. The company said the measures would reduce the number of vehicles it needs to sell each year to reach its break-even point to around 300,000.
Chief executive PB Balaji said the automotive industry was facing major challenges from rapid technological change, intense competition and continued geopolitical uncertainty.
Despite the planned workforce reduction, JLR intends to invest between £15 billion and £18 billion over the next five years in electric vehicles, digital technology, advanced manufacturing and customer experience.
The company also plans to introduce five new products over the next 12 months and increase its focus on the North American market as it targets double-digit revenue growth.
JLR has faced mounting pressure on its financial performance. Revenue fell 9.6% year on year to £6 billion in the three months to the end of June, while wholesale vehicle volumes dropped 9.2%.
Pre-tax profit excluding exceptional items fell 68.9% to £109 million during the period.
The company attributed the weaker results to supply constraints, disruption linked to the conflict in the Middle East and the withdrawal of older Jaguar models. It is also facing stronger competition across the global automotive market as manufacturers accelerate the shift towards electric vehicles.
JLR’s operations were further affected by a major cyberattack in 2025, which forced production to stop at its UK factories for several weeks.
The company, owned by India’s Tata Motors, employs about 34,000 people in Britain. Most of the planned job reductions are expected to affect its UK workforce, although JLR has not provided a breakdown by country.
The company is also dealing with US trade tariffs. Under a UK-US agreement, the first 100,000 UK-made vehicles exported to America each year face a 10% tariff, while vehicles above that threshold are subject to a higher rate.
The UK government has ruled out providing a bailout for JLR despite the difficult conditions facing the automotive sector.
The job cuts come as European carmakers undergo major restructuring amid weak demand, rising costs, tariffs and increased competition from Chinese manufacturers.
Volkswagen last week announced plans to cut a further 50,000 jobs by the end of the decade, taking its total planned workforce reduction to about 100,000. The German manufacturer also plans to reduce its model range and is considering new uses for four factories in Germany.
JLR said the restructuring would help create a stronger and more competitive business while allowing it to continue investing in future vehicle technologies.
