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Jaguar Land Rover announced on Monday that it will reduce its global workforce by 4,000 jobs over the next two years as part of a broader effort to cut costs and remain competitive against Chinese electric vehicle manufacturers. The British automaker aims to save £1.7 billion ($2.3 billion) to support its transition toward electrification.
CEO PB Balaji highlighted the challenges facing the automotive industry, citing rapid technological changes, fierce competition, and ongoing geopolitical uncertainties. The planned savings will help fund an investment of £15 to £18 billion ($20 to $24 billion) over the next five years in electrification, digital innovation, and other strategic areas.
Jaguar Land Rover, known for luxury SUVs like the Range Rover and Discovery, has experienced declining profits and sales amid rising costs, aggressive competition from lower-priced Chinese EVs, and the impact of U.S. tariffs imposed under the Trump administration. These tariffs include a 10% import tax on British-made vehicles, which escalates to 27.5% after 100,000 units annually.
Additionally, the company faced operational setbacks last year when a cyberattack forced a month-long production halt. Owned by India’s Tata Motors, Jaguar Land Rover employs approximately 34,000 people in the UK, where most of the job reductions are expected to occur.
The announcement comes as UK Treasury Chief John Healey pledged support for economic growth and assistance to businesses managing rising costs. However, Prime Minister Andy Burnham’s office confirmed that the government will not provide a bailout for Jaguar Land Rover despite the challenging market conditions.
This move follows a similar cost-cutting initiative by Volkswagen, which recently unveiled plans to eliminate 50,000 jobs, reduce its model lineup by half, and close four German plants to address competition from China and tariff pressures.