Jaguar Land Rover (JLR) is preparing to announce thousands of job cuts through a voluntary redundancy programme to achieve £1.7 billion in cost savings over the next two years. The majority of job losses will affect its UK operations, where around 34,000 staff are employed. JLR confirmed this voluntary redundancy programme, targeting non-production roles. Business Secretary Jonathan Reynolds has ruled out any government financial support for JLR, stating that any aid would only serve as a bailout rather than fostering long-term investment.
JLR’s leadership has already informed colleagues and trade unions about the plans. The company has faced significant challenges, including a major cyberattack last year that halted production for five weeks, leading to financial losses and disrupted sales. JLR aims to reduce break-even points to 300,000 vehicles and improve efficiency to meet evolving global market conditions.
The Treasury Minister, Emma Reynolds, highlighted the competitive pressures faced by car manufacturers globally, particularly from Chinese electric vehicle producers. She emphasized ongoing government support for the automotive industry, including £4 billion in capital and R&D funding for zero-emission vehicles and a £2 billion electric car grant.
JLR’s revenue fell by 9.6% year-on-year to £6 billion in the three months ending June 30, driven by a 9.2% decline in car volumes. The company has been working to cut costs and improve resilience since the cyberattack, which caused production disruptions and financial strain.
Unite general secretary Sharon Graham criticized years of under-investment and high energy costs, calling for further government action to support the industry. She will meet JLR’s leadership alongside Jonathan Reynolds to discuss support measures for affected workers.
Source: The Independent
