Jaguar Land Rover (JLR), the British luxury carmaker owned by the Tata Group, plans to reduce its global workforce by around 4,000 roles over the next two years as part of a cost-cutting programme aimed at improving profitability.
JLR, a subsidiary of Tata Motors Passenger Vehicles Ltd, currently employs around 43,000 people globally. The company is targeting approximately £1.7 billion in savings over the next two years, with the goal of bringing its break-even point down towards 300,000 vehicles.
The company has not specified whether the planned workforce reduction will affect its operations in India.
JLR CEO P B Balaji said the programme covers salaried and management employees globally, with most of the impact expected in the UK. “This will
impact predominately in the UK but there could be limited impact in our global locations,” he said.
Balaji said the automotive industry is facing major challenges due to rapid technological changes, intense competition and continued geopolitical uncertainty.
Despite these pressures, JLR plans to launch five new products over the next 12 months and strengthen its presence in key markets, particularly North America. “Over the next 12 months, we will launch five new products, continue to leverage the strength of our brands and renew our focus on North America, amongst other markets, to help us deliver double digit revenue growth,” he said.
According to Tata Motors Passenger Vehicles, the cost-saving programme is aimed at reducing organisational complexity and supporting sustainable, profitable growth in an increasingly competitive and rapidly changing market.
The company also plans to continue investing between £15 billion and £18 billion over the next five years in areas including electrification, digital technologies, advanced manufacturing and customer experience.
JLR said the planned reduction of around 4,000 roles is not expected to affect direct manufacturing jobs. The company intends to achieve the workforce reduction through voluntary measures wherever possible.
“JLR is today beginning consultation on the first round of reductions and will provide support to all colleagues affected by the changes and engage with Trade Unions and employee representatives throughout the transition,” the company said in its regulatory filing.
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