Jaguar Land Rover Set To Reveal Thousands Of Job Losses

LONDON, Sept 7 (Bernama-PA Media/dpa) -- Jaguar Land Rover is expected to announce thousands of job cuts as part of a voluntary redundancy programme to help save £1.7 billion (US$2.3 billion) over the next two years, reported PA Media/dpa.

The firm is understood to be informing workers on Monday morning, amid reports that it will formally announce plans to cut 4,000 jobs.

Business Secretary Jonathan Reynolds has already ruled out any government bailout for Jaguar Land Rover (JLR), which is Britain’s largest car manufacturer.

He has spoken to JLR chief executive PB Balaji and will meet the firm’s leadership team early this week, with the aim of “mitigating any job losses”.

JLR confirmed in a statement over the weekend that it is opening a voluntary redundancy programme offering salaried and management team members the opportunity to leave the business.

It is understood that the roles affected will be non-production positions, with the majority of the cuts affecting its UK operations, where around 30,000 staff are based.

Just under 10,000 employees are based overseas.

Treasury Minister Emma Reynolds said car companies around the world were facing “very competitive global headwinds”.

European manufacturers have struggled to cope with competition from Chinese carmakers producing cheaper electric vehicles.

Treasury Chief Secretary Emma Reynolds told the BBC: “My thoughts are with the workforce because we have yet to see the final announcement from the company.”

She said Reynolds was “working closely” with JLR’s leadership and trade unions, and that the Government had already provided support to the automotive industry, including JLR, following a devastating cyberattack.

“But car companies around the world are facing very competitive global headwinds as well,” she added.

JLR continues its recovery from the major cyberattack that forced it to halt production last year.

The company makes most of its cars at factories across the United Kingdom (UK), including in Solihull, West Midlands, and Halewood, Merseyside.

A JLR spokesperson said: “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 need to adapt to evolving global market conditions while targeting approximately £1.7 billion (US$2.3 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 confirmed it had informed colleagues and trade union partners of the plans for a voluntary redundancy programme, adding it would “share further information with our colleagues first”.

A government spokesperson said: “We understand that this will be an uncertain and concerning time for affected workers, their families and wider communities.

“We have taken significant action to back the UK automotive industry by lowering electricity bills for manufacturers, providing £4 billion (US$5.4 billion) of capital and R&D funding to manufacture zero-emission vehicles (ZEVs) and launching a £2 billion (US$2.7 billion) electric car grant to encourage people to buy EVs (electric vehicles).”

The job losses come after it revealed plans at the end of July to cut up to 300 jobs under its cost-cutting overhaul.

Unite general secretary Sharon Graham said: “Death by a thousand cuts has been going on under the nose of successive governments.

“Years of under-investment, unsustainable ZEV mandates and high industrial energy costs are crippling the industry.

“There must be further action.”

JLR revealed last month that revenues fell by 9.6 per cent year-on-year to £6 billion (US$8.1 billion) for the three months to June 30, driven by a 9.2 per cent decline in car volumes.

It came after production was heavily disrupted by a raft of factors, including a fire at a supplier’s factory.

Earlier this year, JLR said it planned to cut around £1.7 billion (US$2.3 billion) in costs over the coming years to help support its turnaround.

The firm has been recovering from the cyberattack last year, which forced it to stop production at its UK factories for five weeks, weighed on sales and led to heavy financial losses. 

-- BERNAMA-PA MEDIA/dpa