Jaguar Land Rover is preparing to cut around 4,000 UK jobs over the next two years, adding to a wave of automotive layoffs across Europe as the Tata Motors-owned carmaker battles falling sales, rising costs and the impact of US tariffs.
The planned redundancies, first reported by The Times, are part of( ₹21,700 crore) in savings and reduce its break-even point to 300,000 vehicles.
The British carmaker has told employees and trade union partners that it is opening a voluntary redundancy programme for salaried and management staff.
Jaguar Land Rover layoffs: 4,000 jobs to be cut
JLR employs around 34,000 people directly in UK across three sites in West Midlands and another in Halewood, Merseyside. Its operations also support an estimated 120,000 jobs across the British supply chain.
The latest cuts follow a sharp deterioration in the company’s financial performance. JLR’s revenue fell by nearly 10% in the quarter to June 2026, while pre-tax profit dropped by more than two-thirds to £109 million.
PB Balaji, previously last year as the company sought tighter financial discipline and greater cost control.
The Times quotes the Tata Motors owned British carmaker saying, “Over the past three years, we have strengthened our House of Brands and transformed our product portfolio for the next generation. As we deliver the next phase of our strategy we must adapt to evolving global market conditions while targeting approximately £1.7 billion of savings over the next two years and reduce break-evens to 300,000 vehicles. To achieve this, we must further simplify our organisation, improve efficiency and build greater resilience.
“Today, we informed our colleagues and trade union partners that JLR is opening a voluntary redundancy programme offering salaried and management team members the opportunity to leave the business. We will share further information with our colleagues first.”
What is driving the JLR job cuts?
The 4,000 planned redundancies are part of JLR’s wider effort to reduce its cost base and adjust its operations to changing global market conditions.
The company is attempting to balance cost-cutting with investment in new electric vehicles, while facing weaker demand, tariffs and growing competition in key markets.
The restructuring is expected to run over two years as JLR works towards its £1.7 billion savings target and a lower break-even level.
US tariffs and cyberattack add to JLR’s problems
, its biggest sales region. Trump-administered US accounts for around 29% of the company’s sales, while a 10% tariff imposed by US on UK car imports has added to costs.
Jaguar Land Rover was also hit by a cyberattack in 2025 that disrupted its global operations for months.
The problems facing JLR reflect wider pressure across Europe’s automotive sector, where manufacturers are contending with weaker demand, high costs and increased competition from cheaper Chinese car brands.
Volkswagen layoffs: 50,000 additional jobs at risk
JLR’s planned workforce reduction comes a day after major restructuring at Volkswagen was announced.
cuts, equivalent to about 8% of its global workforce at the end of last year. The plan also envisages fewer vehicle models and a smaller industrial footprint.
“Given intensifying global competition, shifting demand and technological change in the automotive industry, a consistent alignment of workforce capacity with economic reality is essential,” the company said in a statement.
The cuts are in addition to workforce reductions agreed across Volkswagen Group brands since late 2024.
Electric Range Rover starts at £154,070
JLR is simultaneously investing in its electric vehicle portfolio. Orders have opened for the first electric Range Rover, which starts at £154,070 in the UK and $138,000 in the US for the entry-level version.
has a claimed range of 372 miles, or 599 kilometres, under testing conditions and can charge from 10% to 80% in 22 minutes.
“We think that it’s competitively priced and we think it positions Range Rover effectively in the US market,” Chief Operations Officer Nigel Blenkinsop said in a Bloomberg TV interview.
JLR plans to produce between 12,000 and 15,000 electric Range Rovers over the first five to six months, according to Blenkinsop. The company sold close to 200,000 Range Rover vehicles last year.
The electric model’s range is below some rivals. BMW’s iX3, for instance, can travel up to 500 miles on a single charge under testing conditions.