Jaguar Land Rover cuts 4,000 jobs, huge cost reduction plan

The British luxury car manufacturer Jaguar Land Rover has announced that it will cut 4,000 jobs within two years, as part of a broader plan to reduce costs and improve competitiveness. An operation that comes after several months of turbulence marked by a cyber attack that paralyzed production, as well as the duties imposed by Donald Trump on the sector.

“The automotive industry is facing major challenges, with technological evolutions in a context of strong competition and persistent geopolitical uncertainty,” explained in a statement PB Balaji, CEO of Jlr, which employs over 40,000 people worldwide, mainly in the United Kingdom, and is controlled by Tata Motors, the large Indian industrial group that bought the two British brands from Ford in 2008.

The group explains that it wants to reduce “the complexity” of its organization and aims to save 1.7 billion pounds (2 billion euros) to “become more competitive” on the market.

New launches and voluntary exit programme

Jlr also plans to launch five new products over the next 12 months, with a focus on North America, in the hope of achieving “double-digit revenue growth”. This decision comes just days after Volkswagen announced that it would eliminate approximately 50,000 additional jobs worldwide. Jlr had announced that it had initiated “a voluntary resignation programme, offering employees and members of the management team the opportunity to leave the company”.

Accounts in the red between duties and hacker attacks

The company reported a particularly difficult 2025/2026 financial year, with £244 million in net losses, compared to £1.8 billion in profits the previous year. Like other British carmakers, it was affected by US customs duties in 2025, which forced it to temporarily suspend vehicle deliveries to the US.

It also faced a large-scale cyber attack at the end of August 2025 that forced it to halt production for over a month, also putting pressure on many of its suppliers. In its 2026 report, the group put the direct cost of the attack at £260m. According to an estimate from the Cyber ​​Monitoring Centre, an independent body that assesses the severity of cyber incidents in the UK, the attack cost the country’s economy £1.9 billion.

The intervention of the British government

The British government quickly rushed to help, granting a loan guarantee that allowed it to release up to £1.5 billion (€1.7 billion) to support its production chain. British Business Secretary Jonathan Reynolds is due to meet Jlr leaders early this week.