Updated 6 Sep, 2026 06:50
ARCHIVAL PHOTO: Jaguar Land Rover mill in Solihull, England. © Oli Scarff/Getty Images
Jaguar Land Rover (JLR) confirmed the plans to reduce employment as the UK's largest car maker faces rising costs, decline in sales and the effects of U.S. customs; the paper The Times reports that up to 4000 jobs may be liquidated.
JLR was under expanding force from US duties, which increased the cost of selling U.S. vehicles produced in the UK – despite London negotiated a reduced rate of 10%.
The effects of these measures are peculiarly severe, given that North America is the biggest outlet for the company.
The situation was further aggravated by a major cyber attack last year, which forced a fewer weeks of production to stop.
JLR gross dropped by nearly 10% in the 4th completed in June, and pre-tax profit shrunk by more than 2 thirds, to a level of £109 million ($147 million).
According to ‘The Times”, The financial manager of PB Balaji is under force from Indian owner Tata Motors to reduce costs.
In a message to the media, JLR reported that "must adapt to changing global marketplace conditions", while aiming to accomplish savings of £1.7 billion ($2.3 billion) over the next 2 years and lowering the yearly profitability threshold to 300,000 vehicles.
The company besides announced "launching voluntary leave programme“ addressed to employees and managers.
Workers were informed of this on Friday.
‘The Times’ stated that up to 4000 jobs could be eliminated over the next 2 years, although JLR did not confirm this figure.
JLR straight employs around 34,000 people in plants in the West Midlands and Merseyside regions, and besides supports an estimated 120,000 jobs in the UK automotive supply chain.
European car manufacturers are reducing employment in the face of mediocre demand, rising costs and expanding competition from Chinese producers offering lower prices.
This week Volkswagen approved further occupation cuts of 50,000 jobs by 2030, which increases the overall planned scale of occupation simplification in the company worldwide to around 100,000 people.
Porsche, a associate of the company, plans to destruct another 5,000 jobs by 2035.
The crisis in the German automotive manufacture besides exacerbated the advanced energy costs resulting from the failure of access to crucial amounts of inexpensive Russian gas sent by pipelines – a natural material on which the German industrial economy relied for a long time – which followed the escalation of the conflict in Ukraine in 2022.
The president of Volkswagen, Oliver Blume, besides pointed to US duties and expanding competition from China as factors that negatively affect the company's competitiveness.
Translated by Google Translator
source:https://www.rt.com/news/645175-uks-largest-carmaker-axe-jobs/
