Economy 51
Government state support will not be provided to Jaguar Land Rover, the Business Secretary confirmed, following reports the UK’s largest car manufacturer plans to cut 4,000 jobs. The firm is anticipated to officially outline a major redundancy plan on Monday, with workforce reductions taking place across a two-year timeframe, according to The Times. In a statement, JLR confirmed it is introducing a voluntary departure scheme, offering salaried staff and management team members the opportunity to leave the company. Business Secretary Jonathan Reynolds has spoken with JLR chief executive PB Balaji and is to meet the company’s leadership team early next week. He stated that for a company like JLR, workforce changes are part of its business cycle and necessary for competitiveness. Financial support to protect jobs will not be provided, but long-term investment in the future will be considered alongside industry partners.
JLR continues its recovery from a major cyberattack that halted production last year. The company employs about 30,000 people across the UK, with key factories in Solihull (West Midlands) and Halewood (Merseyside). Over the past three years, JLR has strengthened its brand portfolio and shifted focus toward electric vehicles, aiming to achieve £1.7 billion in savings over the next two years and reduce break-even points to 300,000 vehicles. The company has informed colleagues and trade union partners about the voluntary redundancy program and will share further details.
Government measures include lowering electricity bills for manufacturers, providing £4 billion in capital and R&D funding for zero-emission vehicles, and launching a £2 billion electric car grant. Unite general secretary Sharon Graham criticized years of under-investment and high energy costs, calling for further action to mitigate job losses. JLR reported a 9.6% revenue decline to £6 billion for the three months ending June 30, driven by a 9.2% drop in car volumes. Production was paused for Range Rover models due to a fire at a Norwegian supplier’s factory in March. The company reported a pre-tax profit of £109 million for the quarter, down from £351 million a year earlier, partly due to one-off provisions linked to US fuel economy rules.
The cyberattack last year forced JLR to halt production for five weeks, impacting sales and finances. JLR has been working to simplify its organization, improve efficiency, and build resilience amid evolving global market conditions.
Source: The Independent
