Jaguar Land Rover 'to cut 4,000 jobs' as sales fall and tariffs bite

Highlights

• Company employs 34,000 people across four UK sites and supports 120,000 supply chain jobs
• Revenue fell nearly 10 per cent in quarter to June 2026; pre-tax profits down more than two-thirds to £109 million
• Owner Tata Motors pushing for cost cuts
• US tariffs of 10 per cent on UK car imports have hit sales

JAGUAR LAND ROVER will cut 4,000 jobs over two years as the carmaker deals with rising costs, falling sales and the impact of US tariffs, reported the Times.

Bosses are expected to announce the redundancy programme formally on Monday (7).

JLR employs 34,000 people in the UK. The company has three sites in the West Midlands and one in Halewood, Merseyside. It also supports a further 120,000 British jobs in the supply chain.

The news is being seen as a setback for the prime minister, who took office this summer promising to "re-industrialise" Britain, the report added.

JLR's revenue fell nearly 10 per cent in its most recent quarter to June 2026. Pre-tax profits plunged by more than two-thirds to £109 million.

JLR boss PB Balaji is under pressure from the company's Indian owner, Tata Motors, to reduce costs. Balaji, who previously served as Tata Motors' finance chief, was brought in last year to bring more financial discipline to JLR.

JLR hit by Trump tariffs

Trump imposed a 10 per cent tariff on UK car imports. North America accounts for 29 per cent of JLR's sales and is its biggest market. The carmaker was also hit by a cyberattack last year, which brought its global operations to a standstill for months.

Other carmakers across Europe have also cut jobs as they face similar challenges. Cheaper Chinese brands have added to the sales downturn. Volkswagen approved its biggest restructuring in nine decades last week, announcing 50,000 more job losses.

JLR is part of the wider Tata conglomerate in the UK. Tata Steel is carrying out a multibillion-pound investment to convert Port Talbot, Britain's biggest steelworks, to "green steel" production. Tata Consultancy Services delivers several government contracts, and Tata-owned Agratas is building an electric vehicle battery plant in Somerset.

JLR said: "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," the company added.

A government spokesperson said, "We understand that this will be an uncertain and concerning time for affected workers, their families and wider communities."

"We have taken significant action to back the UK automotive industry by lowering electricity bills for manufacturers, providing £4bn of capital and R&D funding to manufacture zero-emission vehicles and launching a £2 billion electric car grant to encourage people to buy EVs."