3 hrs ago
Jaguar Land Rover Plans 4,000 Jobs Cuts Amid Global Pressures
Jaguar Land Rover makes luxury cars and is owned by Tata Motors.
It says it may remove about 4,000 jobs around the world over the next two years.
The company wants to save £1.7 billion to become stronger and more competitive.
Its sales have weakened in China, and American tariffs make selling cars in the United States more difficult.
JLR is also facing stronger competition from Chinese carmakers.
A cyberattack previously stopped its factories for several weeks and caused major losses.
The company plans to ask some workers to leave voluntarily first.
Unions want retraining and voluntary departures to be used instead of forced job losses where possible.
Jaguar Land Rover plans to eliminate around 4,000 roles worldwide over the next two years.
The Tata Motors-owned carmaker aims to save £1.7 billion, or about $2.30 billion, through the restructuring.
The cuts come amid weaker Chinese sales, US vehicle tariffs, Chinese competition, high costs and slower electric-vehicle demand.
A voluntary redundancy programme is expected to begin, with management, salaried and research-and-development roles likely to be more affected than factory jobs.
JLR’s finances were also hurt by a cyberattack that halted production for more than a month and caused a reported 27% production decline.
- Who
- Jaguar Land Rover, owned by Tata Motors, and its approximately 4,000 affected roles; employees, Unite and the UK government are involved in discussions.
- What
- JLR plans a global workforce reduction of around 4,000 roles and a £1.7 billion cost-saving programme over two years.
- Where
- Worldwide, with most expected reductions involving salaried and management positions in the United Kingdom; JLR’s British operations are concentrated in the West Midlands.
- When
- The reductions are planned over the next two years; the voluntary redundancy programme was announced for September, with applications reported as open until October 4.
- Why
- The company cites weaker sales in China, US tariffs, Chinese competition, high costs, slower-than-expected electric-vehicle demand, geopolitical uncertainty and the financial impact of a cyberattack.
Worker Protection and Public Support
Cost Reduction and Competitiveness
How job losses should be handled
Worker Protection and Public Support
Unite and union officials want retraining, redeployment and voluntary departures used wherever possible instead of compulsory redundancies.
Cost Reduction and Competitiveness
JLR says the workforce must adapt to changing global market conditions and has proposed voluntary redundancies as the initial route to reducing roles.
Whether government should prevent the cuts
Worker Protection and Public Support
Union representatives are expected to seek help from the UK government and discuss ways to limit job losses.
Cost Reduction and Competitiveness
Business Secretary Jonathan Reynolds indicated that taxpayer funding would not be provided specifically to prevent the reductions, while saying discussions should focus on competitiveness.
Business priority
Worker Protection and Public Support
Employees and unions are concerned about uncertainty and the effect of the reductions on workers and communities around JLR’s British operations.
Cost Reduction and Competitiveness
JLR says the restructuring is needed to save £1.7 billion, support five new products over 12 months and improve long-term competitiveness.
Key facts
- Planned job reduction
- Around 4,000 roles globally over two years
- Targeted savings
- £1.7 billion, reported as approximately $2.30 billion or ₹21,700 crore
- Ownership
- Jaguar Land Rover is owned by Tata Motors
- Workforce
- Articles estimate JLR’s global workforce at about 43,000 to 44,000, with UK employment estimates ranging from roughly 30,000 to 34,000
- Redundancy process
- Voluntary redundancy is planned first; compulsory redundancies could follow if necessary
- Cyberattack impact
- Production stopped for more than a month, with overall production reportedly falling 27% and costs reaching about £200 million
- US tariffs
- Tariffs on affected vehicles initially reached 27.5% before falling to 10% under a trade agreement
Quotes
PB Balaji
Chief executive of Jaguar Land Rover
“These challenges arrived with the global automotive industry already under continued pressure from cost inflation, slower-than-expected uptake of electric vehicles, and the deterioration of market conditions in China.”
telegraphindia.com
“technological change amidst intense competition and ongoing geopolitical uncertainty”
firstpost.com
Jonathan Reynolds
UK Business Secretary commenting on discussions about JLR’s workforce and competitiveness
“If this is about making sure over time that the workforce is right to make the business as competitive as possible, that’s the conversation we need to have”
livemint.com
Sources
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