JLR will cut around 4,000 roles globally over two years as part of a cost saving plan targeting Pound 1.7 billion in savings.
JLR currently employs about 43,000 people worldwide, so this reduction works out to roughly 9% of its total headcount.
The company has been clear that it wants to avoid touching direct manufacturing roles wherever it can, and plans to rely on voluntary measures for most of the reductions.
Consultations on the first round of job cuts have already begun, and JLR says it will work alongside trade unions and employee representatives as the process unfolds.
This move is tied to a broader strategy called Growth Reimagined, which JLR laid out at its Investor Day back in June.
The plan targets around Β£1.7 billion in savings over two years, with the goal of lowering the company’s break even point to roughly 300,000 vehicles sold annually. Despite the cost cutting, JLR isn’t pulling back on its bigger ambitions.
The company remains committed to investing between Β£15 billion and Β£18 billion over the next five years into areas like electric vehicles, digital technology, advanced manufacturing and improving the overall customer experience.
The backdrop to all this hasn’t been easy. Almost a year ago, JLR was hit by a major cyberattack that forced production to a halt for several weeks, contributing to a 27% drop in output and an estimated total cost of around Β£1.9 billion.
On top of that, the company is now dealing with a 10% US tariff on cars made in the UK, a policy that affects North America, a region that makes up close to 29% of JLR’s total global sales.
Rising competition from lower priced Chinese carmakers is adding further pressure across the markets JLR operates in.
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