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JLR Slashes 4,000 Jobs Amidst Rising Costs
5 Sep
Summary
- Jaguar Land Rover plans to cut 4,000 jobs over the next two years.
- The company aims to achieve £1.7 billion in savings within two years.
- Revenue dropped nearly 10%, with pretax profit falling 69% last quarter.
Jaguar Land Rover (JLR) is implementing a significant workforce reduction, planning to cut 4,000 jobs over the next two years. This decision stems from the challenges of soaring costs, declining sales, and the impact of US tariffs.
The UK's largest carmaker is targeting substantial savings, aiming to reduce its break-even point to 300,000 vehicles and simplify its operations. These measures are a direct response to evolving global market conditions.
The financial strain is evident, with revenue falling nearly 10% in the most recent quarter. Pretax profit saw a sharp decline of 69%, dropping to £109 million.
JLR's challenges are compounded by factors such as the high price of its new electric Range Rover, competition from cheaper Chinese electric vehicles, increased US tariffs, and a slump in demand in China. A cyberattack last year also disrupted global operations.
These headwinds are not unique to JLR, as other European carmakers face similar pressures. Volkswagen, for instance, is undergoing a restructuring plan that includes an additional 50,000 job cuts.
