Business Secretary Jonathan Reynolds has ruled out a government bailout for
Jaguar Land Rover (JLR) after the carmaker confirmed plans to cut around 4,000 jobs globally over the next two years as part of a major cost-saving programme.
Reynolds is expected to meet JLR executives this week following the announcement, which the company said forms part of a broader transformation strategy designed to improve competitiveness in an increasingly challenging global automotive market.
The Business Secretary had already rejected calls for government financial support over the weekend, as reports emerged that the Tata Motors-owned manufacturer was preparing to reduce headcount. A government spokesperson said ministers understood the uncertainty facing affected workers and their families, while pointing to a series of measures aimed at supporting the wider UK automotive sector.
JLR confirmed on Monday that it plans to reduce its global workforce by around 4,000 roles over the next two years, equivalent to nearly 10% of its workforce. The programme is expected to focus primarily on salaried and management positions rather than production roles.
Chief executive PB Balaji said the automotive industry continues to face significant pressures from technological change, intense competition and geopolitical uncertainty. He said the company was taking decisive action to strengthen its long-term position while continuing to invest heavily in future technologies and products.
As part of the restructuring, JLR is targeting approximately £1.7bn in savings over the next two years and aims to reduce its break-even point to around 300,000 vehicles. The company said the measures would support planned investment of between £15bn and £18bn over the next five years in electrification, digital technologies, advanced manufacturing and customer experience initiatives.
Despite the job reductions, JLR said it intends to launch five new products over the next 12 months as it seeks to drive growth and strengthen its position in key markets, including North America.
The company has faced a series of challenges in recent years, including intensifying competition from Chinese manufacturers, the impact of US tariffs and the aftermath of a cyberattack that disrupted production and supply chains.
JLR employs around 34,000 people in the UK and approximately 43,000 worldwide, with major operations in the West Midlands and Merseyside. The planned reductions represent one of the most significant restructuring programmes undertaken by the company in recent years and are likely to intensify scrutiny of the health of Britain's automotive sector.