Jaguar Land Rover (JLR) has opened a voluntary redundancy programme that could lead to up to 4,000 job losses over the next two years as the carmaker looks to respond to weakening revenue and other pressures.

The company told employees and union representatives on Saturday that it is launching the scheme for salaried and management staff. The redundancies are intended to help JLR deliver savings of about £1.7 billion over the period, as it seeks to adapt to what it described as changing global market conditions.

Job Cuts Plan

JLR employs around 44,000 people worldwide, with about 30,000 based in the UK. Most of those workers are in the West Midlands, where the firm operates 14 plants and is one of the region’s largest employers.

The company’s global headquarters are in Whitley, Coventry. Manufacturing sites include facilities in Solihull, Wolverhampton and Halewood on Merseyside.

JLR said the savings target is aimed at reducing break-even to 300,000 vehicles. To achieve that, the spokesman said, the business would simplify its organisation, improve efficiency and strengthen resilience. The company said it has informed colleagues and trade union partners, and that it will provide further details first to those affected.

Government And Union Talks

The Unite union said it had previously warned of a “perfect storm” affecting the industry.

Unite general secretary Sharon Graham said she and business secretary Jonathan Reynolds would meet JLR chief executive PB Balaji next week following talks at the weekend aimed at reducing the impact on jobs. The business secretary is also understood to have spoken with West Midlands mayor Richard Parker about support for the company and its workers.

The announcement is likely to disappoint prime minister Andy Burnham, who has pledged to safeguard “sovereign manufacturing” and drive re-industrialisation in Britain.

Labour’s previous commitments to JLR also formed part of the wider context. In the aftermath of a cyber attack that halted production for several weeks last year, former prime minister Keir Starmer promised Labour would underwrite a £1.5 billion loan guarantee.

Cyber Attack And Sales Slump

JLR said the cyber attack and the loss of manufacturing contributed to a significant financial deterioration. The disruption was followed by a 27% fall in overall production and cost the company about £200m, with no vehicles produced for most of several weeks. Earlier financial results showed profit before tax of £14 million, down sharply from £2.5 billion the year before.

JLR later estimated that the total cost of the cyber incident and subsequent production losses was £1.9bn. At the time, it said the company would have to make savings, including through changes related to materials, warranty and fixed costs.

In addition, JLR said it had suffered a sales slump last month tied to a fire at a supplier’s factory and disruption associated with the US-Iran war. Revenues fell 9.6% year-on-year to £6 billion for the three months to 30 June.

The firm also described earlier interruptions to production. In March, it temporarily paused output of Range Rover and Range Rover Sport models at its Solihull plant after a fire at a component manufacturer in Norway. It also ended production on a number of diesel and petrol models, including the F-Pace.

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5 September 2026

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