As many as 4,000 jobs could be lost at Jaguar Land Rover (JLR) following a drop in sales and revenue. The automobile manufacturer, which owns a factory plant in Halewood, is expected to formally announce a major redundancy programme on September 7.
Redundancy plans and government response
Business Secretary Jonathan Reynolds is due to meet Jaguar Land Rover bosses amid reports that the company aims to drastically cut down its workforce, with job losses to be spread over two years, The Times said.
JLR reportedly told the newspaper that it informed employees on Friday, September 4, that it is opening a voluntary redundancy programme offering salaried and management team members the opportunity to leave the business.
It comes as the group continues its recovery from a major cyberattack which forced it to halt production last year.
Workforce and production impact
The company employs about 30,000 people across the UK and makes most of its cars in factories in the country, including in Halewood and Solihull, West Midlands. It is unclear at the moment which hubs will be impacted by the possible cuts.
The Business Secretary has already spoken to JLR chief executive PB Balaji, and will meet the firm's leadership team early next week.
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 £4 billion of capital and R&D funding to manufacture zero-emission vehicles (ZEVs) and launching a £2 billion electric car grant to encourage people to buy EVs (electric vehicles)."
Union criticism and financial losses
Unite general secretary Sharon Graham said: "Death by a thousand cuts has been going on under the nose of successive governments.
"Years of under-investment, unsustainable ZEV mandates and high industrial energy costs are crippling the industry. There must be further action.
"There have been intensive Government discussions over the weekend to look at how to mitigate these jobs losses at JLR."
JLR revealed last month that revenues fell by 9.6% year-on-year to £6bn for the three months to June 30, driven by a 9.2% decline in car volumes.
It came after production was heavily disrupted by a raft of factors, including a fire at a supplier's factory. JLR briefly paused production for its Range Rover and Range Rover Sport models at its Solihull plant in March after a major fire at the factory of a component manufacturer in Norway.
Car sales volumes have also been impacted by Jaguar's decision to stop the production of numerous diesel and petrol-run models, including its F-Pace. Jaguar is shifting its focus to electric models as part of a strategy overhaul to boost the brand's fortunes.
JLR reported a pre-tax profit, before exceptional items, of £109 million for the quarter, compared with a £351m profit a year earlier. Profit margins were knocked by a one-off provision linked to US fuel economy rules, which partially offset reduced US-UK tariffs.
Earlier this year, JLR said it planned to cut around £1.7 billion in costs over the coming years to help support its recovery. The firm has been recovering from the cyberattack last year which had major impact on the business, its employees and the wider UK economy. The car maker was forced to stop production at its UK factories for five weeks from September 1 last year, which weighed on sales in late 2025 and led to heavy financial losses.
