The Government and Unite are holding talks with JLR management after the carmaker today launched a voluntary redundancy programme that will affect up to 4,000 jobs.
Business and trade secretary Jonathan Reynolds is expected to meet JLR chief executive PB Balaji and union representatives to discuss how potential job losses can be mitigated.
JLR has now confirmed the reported figure of job losses but said salaried and management employees would be offered the opportunity to leave voluntarily.
“The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geo-political uncertainty,” it said. “Through our Growth Reimagined strategy, JLR is moving decisively to strengthen our competitiveness and position the business for long-term success.
“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. At the same time, we are reducing organisational complexity and targeting £1.7 billion of savings to lower our break-even point towards 300,000 vehicles and become fitter to compete in a rapidly evolving market.
It said these actions will support investment plans of up to £18bn over the next five years in electrification, digital technologies, advanced manufacturing and customer experiences.
“As part of this transformation, we will reduce our global workforce by around 4,000 roles over the next two years,” it confirmed. “We recognise this will be difficult news for colleagues affected, and are committed to supporting everyone with care, fairness and respect. Together, these actions will help build a stronger, more competitive JLR for all our stakeholders.”
The manufacturer has not ruled out compulsory redundancies and it is also unclear whether customer-facing, regional or retailer support roles will be included in the restructuring.
Reynolds said the Government would not provide support simply to “bail people out” but indicated that it could consider measures supporting long-term investment in JLR and the wider automotive industry.
He told the BBC: “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.”
JLR employs around 30,000 people in the UK, with major manufacturing operations at Solihull, Halewood and Wolverhampton, alongside its engineering and corporate facilities.
Unite general secretary Sharon Graham said intensive discussions had taken place over the weekend to examine how job losses could be reduced.
She 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.”
The latest restructuring follows JLR’s announcement in July that up to 300 jobs would be removed as it sought to improve decision-making and business performance. Around 500 management positions were also cut in 2025.
JLR’s revenue fell 9.6% to £6 billion during the quarter ending June 30, while wholesale volumes declined 9.2%. Pre-tax profit before exceptional items dropped from £351 million to £109m. The company nevertheless remained profitable despite supply disruption, weaker volumes and pressures surrounding tariffs and international demand.
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