Jaguar Land Rover to cut 4,000 jobs as it targets £1.7bn in savings

CEO PB Balaji acknowledged the impact this would have on colleagues, adding that the company was committed to supporting all employees with fairness and respect.

Mr Balaji, who has been CEO since November last year, said the automotive industry as a whole had faced "significant changes in recent years".

He put this down to technological changes in switching to electric vehicles, intense competition from Chinese brands, and ongoing geopolitical uncertainty.

As a result of this, JLR is moving forward with its Growth Reimagined strategy to "strengthen our competitiveness and position the business for long-term success".

It will reduce its organisational complexity and target £1.7billion in savings to lower its break-even point.

This should allow Jaguar Land Rover to become "fitter to compete in a rapidly evolving market".

Jaguar Land Rover is aiming to achieve the job losses through a voluntary redundancy scheme. An application window is open until October 4, the BBC reported.

However, JLR noted that it could be forced to make compulsory redundancies if necessary, which is believed to contain less generous terms.

Mr Balaji said: "These actions will support continued investment of £15-18billion over the next five years in electrification, digital technologies, advanced manufacturing and enhanced customer experiences.

"As part of this transformation, we will reduce our global workforce by around 4,000 roles over the next two years."

Jaguar Land Rover plans to launch five new products over the next 12 months, including the Range Rover Electric and highly anticipated Jaguar Type 01.

The CEO said this would "continue to leverage the strength of our brands and renew our focus on North America amongst other markets to help us deliver double-digit revenue growth".

Sharon Graham, General Secretary of Unite, said the union had been warning of a "perfect storm" looming over the UK car industry for many years.

She highlighted pressure from underinvestment, "unsustainable" Zero Emission Vehicle mandate targets and some of the highest energy costs in the world.

Ms Graham warned that these factors are "crippling the industry", adding that it was not fair for workers to continually pay the price for these issues.

In its latest financial report, JLR announced that its revenue for Q1 of the 2027 financial year was down 9.6 per cent year-on-year to £6billion.

This was linked to a fire at a major component supplier in Norway, which caused a temporary production pause, as well as political uncertainty in the Middle East.

Despite this, JLR is still targeting double-digit revenue growth over the next five years, aided by its upcoming product offensive across its brands.