Jaguar Land Rover (JLR), owned by Tata Motors, plans to cut about 4,000 jobs in the UK over the next two years as the carmaker seeks to reduce costs amid weaker sales, rising expenses and US tariff pressures, according to The Times.
JLR is expected to formally announce the redundancy programme on Monday, with employees informed late on Friday that an announcement was due, The Times reported.
The company employs around 34,000 people in the UK across three sites in the West Midlands and a facility in Halewood, Merseyside. Its operations also support an estimated 120,000 jobs across the British supply chain.
According to The Times, JLR chief executive PB Balaji is under pressure from Tata Motors to reduce costs as the company grapples with a downturn in sales. JLR’s revenue fell by nearly 10% in the quarter ended June 2026, while pre-tax profit declined by more than two-thirds to £109 million.
Balaji, who previously served as Tata Motors’ finance chief, was appointed JLR chief executive last year as the company sought greater financial discipline.
US tariffs add to pressure
JLR is also facing the impact of US trade measures. US President Donald Trump has imposed a 10% tariff on cars imported from the UK, with North America accounting for 29% of JLR’s sales and representing its largest market.
The carmaker was also hit by a cyberattack last year that disrupted its global operations for several months, adding to the challenges facing the business.
JLR is targeting savings of about £1.7 billion over the next two years and aims to lower its break-even point to 300,000 vehicles.
In a statement to The Times, JLR said it needed to simplify its organisation, improve efficiency and strengthen resilience in response to changing global market conditions.
“Over the past three years, we have strengthened our House of Brands and transformed our product portfolio for the next generation. As we deliver the next phase of our strategy we must adapt to evolving global market conditions while targeting approximately £1.7 billion of savings over the next two years and reduce break-evens to 300,000 vehicles. To achieve this, we must further simplify our organisation, improve efficiency and build greater resilience,” the company told The Times..
JLR said it had informed employees and trade union partners that it was opening a voluntary redundancy programme for salaried and management employees.
“Today, we informed our colleagues and trade union partners that JLR is opening a voluntary redundancy programme offering salaried and management team members the opportunity to leave the business. We will share further information with our colleagues first,” the company told The Times.
JLR’s planned job cuts come as European carmakers contend with weaker demand, higher operating costs and increasing competition from lower-priced Chinese brands.
Volkswagen last week approved the largest restructuring programme in its 90-year history, with plans to cut an additional 50,000 jobs.
JLR is a significant part of Tata’s wider business presence in the UK.
Tata Steel is investing billions of pounds to convert its Port Talbot steelworks to produce green steel. Tata Consultancy Services holds several contracts with the UK government, while Tata-owned Agratas is developing an electric vehicle battery plant in Somerset.