Jaguar Land Rover is preparing to cut up to 4,000 jobs over the next two years, mainly through a voluntary exit program aimed at clerical and managerial staff. The news, first reported by the Times, comes after a particularly difficult period for the group controlled by Indian Tata Motors. The plan should allow JLR to reduce costs and lower the production breakeven point, as part of a savings program estimated at around £1.7 billion. The company has about 33-34,000 employees in the UK, mainly at the Solihull and Halewood plants, and the reduction would represent the group’s largest layoff program since 2019.
JLR prepares to cut thousands of jobs
The decision is based on a combination of factors that heavily impacted the accounts. In the fiscal year ending March 2026, JLR saw revenues fall to £22.9 billion, more than a fifth less than the previous year, while pre-tax profit plummeted to just £14 million, compared to £2.5 billion the previous year. Contributing factors included US tariffs on cars, weak demand and increasing competition, especially in China, as well as the consequences of a serious cyberattack that forced the company to halt production for weeks in several countries. In the quarter ending December, wholesale volumes collapsed by 43.3%, and retail sales dropped by 25.1%.
Transition to electric
The crisis comes as JLR is engaged in a costly transformation towards electric vehicles, with new models from the Jaguar and Land Rover brands aimed at revitalizing the group. This transition makes the downsizing particularly delicate: the company must simultaneously contain expenses, invest in new vehicles, and face issues with the future availability of UK-produced batteries. The British government has already allocated £380 million in support for the Agratas Gigafactory in Somerset, considered strategic for JLR’s electric supply chain. But the project is experiencing delays and may enter production only in 2028.
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