Jaguar Land Rover has opened a voluntary redundancy programme for salaried and management employees as it works to cut costs following weaker sales, U.S. tariffs, and last year’s major cyberattack. Reports suggest as many as 4,000 jobs could be affected over the next two years, although JLR has not confirmed a final number.
Business Secretary Jonathan Reynolds is expected to meet JLR executives and Unite representatives this week to discuss ways to reduce the impact of the cuts. Reynolds has ruled out a government bailout but said support for long-term investment in the company could still be considered.
JLR Targets £1.7 Billion in Savings
JLR says the redundancy programme is part of a plan to simplify the business, improve efficiency, and increase its resilience. The automaker is targeting approximately £1.7 billion in savings over the next two years and wants to lower the sales volume needed to break even to about 300,000 vehicles annually.
The company employs about 30,000 people in the U.K., with major operations in the West Midlands and Merseyside. The reported reductions are expected to focus mainly on salaried and management roles rather than manufacturing positions.
JLR has faced several setbacks over the past year. A cyberattack in September 2025 halted manufacturing for several weeks, while tariffs and weaker demand have put additional pressure on its sales and profitability.
The company had already announced a smaller cost-cutting programme in July that was expected to result in fewer than 300 departures. The latest programme would be considerably larger if the reported figure of 4,000 positions is reached.
Government and Union Seek to Limit Job Losses
Unite general secretary Sharon Graham said the union has been holding discussions with JLR over how to reduce the number of jobs affected. She has also warned that the wider U.K. automotive industry is under pressure from changing demand, trade barriers, and rising competition.
Reynolds said the government’s discussions with JLR would focus on keeping the company competitive over the longer term rather than maintaining every existing position. He has also pointed to possible changes to electric vehicle sales rules, saying the government is consulting on how regulation can better reflect consumer demand and industry conditions.
JLR has not ruled out compulsory redundancies if the voluntary programme does not achieve its targets. The company said further information would first be provided directly to employees and its trade union partners.
Featured image credits: Wikimedia Commons
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