JLR said it has already informed employees and trade union partners about the plan. Jaguar Land Rover has opened a voluntary redundancy programme as it looks to cut costs and simplify its business. The programme gives salaried employees and management team members the option to leave the company.
Because of the possible impact on workers and the wider car industry, the UK government is closely watching the situation. Business Secretary Jonathan Reynolds has spoken to JLR chief executive PB Balaji and is due to meet the company’s leadership team early next week. It said it has reduced electricity costs for manufacturers, provided £4 billion in capital and research and development funding for zero-emission vehicle production and launched a £2 billion electric car grant to encourage people to buy EVs. The company said last month that revenue dropped 9.6% year-on-year to £6 billion for the three months ending June 30. Car volumes declined 9.2%, adding to the pressure on the business.
Unite general secretary Sharon Graham said the industry has faced years of under-investment, high industrial energy costs and pressure from zero-emission vehicle mandates. The possible job cuts come after JLR reported a sharp fall in revenue. The government pointed to the support it has already provided to the UK automotive industry. Trade union Unite has called for more government action to protect jobs in the industry. JLR’s vehicle volumes also fell during the quarter.
Reports suggest the company could cut up to 4,000 jobs in the UK over the next two years. JLR has not publicly confirmed the figure of 4,000 job cuts . JLR said it wants to achieve about £1.7 billion in savings over the next two years and reduce its break-even point to 300,000 vehicles. JLR employs around 30,000 people in the UK, as noted by The Independent.
JLR said it needs to make its organisation simpler and more efficient. A company spokesperson said the carmaker needs to “simplify” its organisation, improve efficiency and build greater resilience as it moves into the next phase of its strategy. The Times reported that JLR is expected to formally announce a major redundancy programme, with the job losses spread across two years. The company has confirmed the voluntary redundancy programme but said it would provide more information to employees first.
The company is under pressure to reduce costs as it deals with difficult global market conditions. The company makes most of its cars in Britain, with major factories including plants in Solihull, West Midlands, and Halewood, Merseyside.
