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Jaguar Land Rover (JLR) will reduce its global workforce by around 4,000 roles over the next two years, CEO PB Balaji said, as the luxury carmaker moves to cut costs and improve competitiveness.
As a division of Tata Motors, the company is planning a restructuring to streamline its operations, increase efficiency, and improve competitiveness in the global automobile industry.
JLR has set a target of cutting costs by about 1.7 billion pounds over the next two years. In addition, JLR plans to reduce its breakeven point to 300,000 units amid market changes.
In a statement, the company explained that it required further operational simplification, improved efficiency, and greater resilience amid changes in the global market environment.
JLR has launched a voluntary redundancy process for its salaried and management personnel, allowing them to leave the company voluntarily. Further details were to be communicated to employees first.
The planned layoffs have been driven by challenges facing the company, including lower sales, rising costs, US tariffs, and stiff competition from Chinese automobile companies.
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Restructuring at JLR is geared towards achieving operational simplicity while considering its overall investments. According to CEO PB Balaji, the company will reduce its workforce by about 4,000 roles over the next two years.
This move comes in light of the increasing pressure facing car makers in Europe given changing consumer needs and competition from cheaper electric vehicle makers in China.
This comes after other job cuts in Europe's automotive sector, driven by changes in the global market.
