Jaguar Land Rover (JLR) plans to cut about 4,000 jobs over the next two years. This decision comes as the company faces declining sales and rising costs, including the impact of U.S. tariffs. The Tata Motors-owned carmaker announced that the layoffs will mainly affect salaried and management staff. This move is part of a strategy to save around £1.7 billion and lower its break-even point to 300,000 vehicles.
Key Details
The decision follows a significant drop in JLR's financial performance. Revenue fell nearly 10% in the quarter ending June 2026. Pre-tax profit for that period dropped by more than two-thirds to £109 million. JLR employs about 34,000 people in the UK and supports an estimated 120,000 jobs in the supply chain. The company has started a voluntary redundancy program to help with the cuts.
PB Balaji, who took charge of JLR last year, stressed the need for the company to adjust to changing market conditions. “Over the past three years, we have strengthened our House of Brands and transformed our product portfolio for the next generation. As we deliver the next phase of our strategy we must adapt to evolving global market conditions,” the company said.
Background
The layoffs come as demand weakens in key markets, including China, which has further pressured JLR's sales. The automotive industry has seen many job cuts across Europe as manufacturers face similar challenges.
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The job cuts at JLR could lead to less consumer spending and affect the UK automotive sector, which is already dealing with issues from tariffs and demand changes. Investors will be looking for updates on JLR's restructuring plans and potential effects on its supply chain. Watch for updates on JLR's financial performance in the upcoming quarterly earnings report.
Based on reporting by: livemint.com, moneycontrol.com