Jaguar Land Rover (JLR), owned by Tata Motors, plans to cut around 4,000 jobs in the UK over the next two years. The company has opened a voluntary redundancy programme for salaried and management employees as it tries to reduce costs and respond to difficult global market conditions.
The job cuts are part of a wider plan to save about £1.7 billion (Rs 21,700 crore) over two years and lower the number of vehicles JLR needs to sell to break even to 300,000.
Jaguar Land Rover employs around 34,000 people directly in the UK, across three sites in the West Midlands and another in Halewood, Merseyside. Its operations also support an estimated 1,20,000 jobs across the UK supply chain.
The layoffs come after a sharp decline in the company’s financial performance. Revenue fell by nearly 10% in the quarter to June 2026, while pre-tax profit dropped by more than two-thirds to £109 million.
JLR is facing several challenges. Demand for its vehicles has weakened, while costs have increased and competition has grown, particularly from cheaper Chinese carmakers. The company is also dealing with a 10 per cent US tariff on UK car imports. The US accounts for about 29 per cent of JLR’s sales, making the market especially important. A cyberattack in 2025 also disrupted the company’s global operations for months.
The restructuring is aimed at making JLR smaller and more efficient while allowing it to continue investing in electric vehicles. The company has opened orders for its first electric Range Rover, priced from £154,070 in the UK and $138,000 in the US. It plans to produce 12,000 to 15,000 units in the first five to six months.
JLR’s cuts come amid wider pressure on Europe’s auto industry. Volkswagen has also approved plans that could put another 50,000 jobs at risk as manufacturers deal with weaker demand, rising costs, technological change and growing global competition.