Jaguar Land Rover Limited to Cut 4,000 Jobs Over Two Years Amid Chinese Price Competition and Declining Sales

[Financial News] Jaguar Land Rover Limited (JLR), a leading British automaker, plans to cut up to 4,000 jobs over the next two years as it responds to aggressive pricing by Chinese automakers and sluggish sales.
According to the Financial Times (FT) on the 6th local time, JLR, a subsidiary of India’s Tata Motors, said it would introduce a voluntary retirement program for office and management staff. The company said, "We decided to take this measure to simplify our organizational structure, improve efficiency and strengthen management resilience." JLR did not disclose an official figure for the cuts. However, people familiar with the situation said up to 4,000 office and management employees could be affected. Production-line workers at manufacturing plants will be excluded.
In June, JLR CEO PB Balaji announced a £1.7 billion cost-cutting plan. He said the company would lower its annual break-even sales target from 380,000 vehicles to about 300,000 and increase its exposure to the U.S. market.
JLR’s struggles reflect the combined impact of the rapid expansion of Chinese automakers’ market share in the United Kingdom, including Chery Automobile, and the fallout from a major cyberattack last year. Chery Automobile, which owns the Jaecoo and Omoda brands, sold more than 91,000 vehicles in the United Kingdom this year, helped by the popularity of the JAECOO 7, dubbed the “Temu version of the Range Rover.” By contrast, Land Rover sales totaled only about 41,000 vehicles over the same period, according to the Society of Motor Manufacturers and Traders (SMMT).
JLR is responding by restructuring around its high-end lineup. It is preparing to launch a new all-electric Jaguar Cars model priced above £100,000. The company has also unveiled the first all-electric Range Rover, which will be produced at its Solihull plant and carry a list price of £154,070. JLR is also considering local production through a partnership with Stellantis to respond to U.S. tariff policies.
With major British manufacturers such as Aston Martin and Bentley also moving to reduce their workforces, JLR’s large-scale job cuts are expected to create a significant burden for the new government led by Prime Minister Andy Burnham.
Jonathan Reynolds, secretary of the Department for Business and Trade, told the British Broadcasting Corporation (BBC) that he had spoken with JLR executives and the union’s general secretary and that a joint meeting would be held early next week. Sharon Graham, the union leader, also stressed, "We are holding intensive discussions with the government to minimize the impact on our members, and we cannot accept a situation in which the burden is placed solely on workers."
[email protected] Yoon Jae-jun Reporter