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“The automotive industry faces significant challenges, with
technological change amidst intense competition and ongoing
geopolitical uncertainty,” chief executive PB Balaji said in a
statement.
The job cuts and savings will help the company invest 15 to 18
billion pounds ($20-24 billion) over the next five years in
electrification, digital technologies and other areas, he added.
Jaguar Land Rover, which makes the Range Rover, Discovery and
other luxury SUVs, has reported slumping profits and sales in
the face of intense competition from cheaper Chinese EVs,
soaring costs and the impact of U.S. President Donald Trump's
tariffs.
The tariff policy introduced a 10% import tax for British-made
cars, with the tax rising to 27.5% after the first 100,000
vehicles produced in a year.
The company's sales were also hit last year when a cyberattack
forced it to halt production for a month.
The company, owned by India's Tata Motors, makes most of its
cars in factories across the U.K. It employs around 34,000
people in the country and the majority of the job cuts are
expected to affect its U.K. operations.
Monday's news came as Treasury chief John Healey pledged to grow
Britain's sluggish economy and help businesses navigate rising
costs.
Prime Minister Andy Burnham's office said Monday that while
market conditions are challenging for the automotive sector
globally, Britain's government will not consider a bailout for
Jaguar Land Rover.
Last week, Volkswagen announced a sweeping cost-cutting plan
that would cut 50,000 jobs, slim the company’s model line by
half and end auto production at four German plants to counter
competition in China and the effects of U.S. tariffs.
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