JLR is expected to formally announce a major redundancy programme on Monday
The Business Secretary has ruled out a government bailout for Jaguar Land Rover amid reports that the UK’s largest car manufacturer is set to axe 4,000 jobs.
The company is expected to formally unveil a significant redundancy programme on Monday, with the job cuts to be phased over two years, according to The Times.
JLR confirmed in a statement that it is launching a voluntary redundancy scheme, offering salaried and management staff the opportunity to leave the business.
Business Secretary Jonathan Reynolds has held talks with JLR chief executive PB Balaji and is due to meet the firm’s senior leadership team early this week.
Speaking on Laura Kuenssberg’s programme on the BBC, he said: “A company the size of JLR, which is a huge British success story, at various times in its business cycle, the number of, directly, people it employs will change.
“If this is about making sure over time that the workforce is right to make the business as competitive as possible, that’s the conversation we need to have.
“Of course you want to mitigate any job losses.”
When pressed on whether financial assistance could be made available to safeguard those roles, he added: “Not if it’s to bail people out.
“If it’s about long-term investment in the future, we do invest alongside industry on that.”
JLR is continuing its recovery following a significant cyberattack that forced the manufacturer to suspend production last year. The firm employs approximately 30,000 staff throughout the UK and manufactures the majority of its vehicles at plants across the country, including facilities 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 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 firm confirmed it had notified employees and trade union partners of the voluntary redundancy scheme, 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 of capital and R&D funding to manufacture zero-emission vehicles (ZEVs) and launching a £2 billion electric car grant to encourage people to buy EVs (electric vehicles).”
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.
“There have been intensive Government discussions over the weekend to look at how to mitigate these job losses at JLR.
“The business secretary, Jonny Reynolds and myself are meeting the CEO of JLR next week. Unite was pivotal in securing the £1.5 billion government facility for JLR after the cyber attack.
“Once again, we will leave no stone unturned to support these workers. It cannot be acceptable that workers again are made to pay the price.”
JLR disclosed last month that revenues dropped by 9.6% year-on-year to £6 billion for the three months to June 30, driven by a 9.2% fall in vehicle volumes.
This followed a period in which production was significantly disrupted by a series of factors, amongst them a fire at a supplier’s facility.
JLR temporarily halted production of its Range Rover and Range Rover Sport models at its Solihull plant in March, after a severe fire broke out at a component manufacturer’s factory in Norway.
Sales volumes have also taken a hit following Jaguar’s move to discontinue several diesel and petrol-powered models, including the F-Pace.
Jaguar is pivoting towards electric vehicles as part of a sweeping strategic overhaul aimed at revitalising the brand.
JLR posted a pre-tax profit, excluding exceptional items, of £109 million for the quarter, a marked decline from the £351 million profit recorded in the same period a year earlier. Profit margins took a hit from a one-off provision related to US fuel economy regulations, which partly counterbalanced reduced US-UK tariffs.
Earlier this year, JLR announced plans to slash approximately £1.7 billion in costs over the coming years to bolster its recovery efforts.
The firm has been recuperating from last year’s cyberattack, which had a significant impact on the business, its workforce and the broader UK economy.
The car manufacturer was compelled to halt production at its UK plants for five weeks from 1st September last year, which hit sales in late 2025 and resulted in substantial financial losses.





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