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British carmaker Jaguar Land Rover (JLR) has opened a voluntary redundancy program for salaried and management staff as part of a sweeping multibillion, cost-cutting campaign.
The Tata Motors-owned vehicle manufacturer confirmed the voluntary exit scheme for white-collar staff over the weekend as it moves to lower its global operational break-even threshold to 300,000 vehicles annually. While unconfirmed British media reports indicate the two-year operational overhaul could impact up to 4,000 non-assembly positions across its 30,000-strong U.K. workforce, JLR noted that hourly assembly line workers at primary manufacturing facilities will remain outside the scope of the program.
“Over the past three years, we have transformed our product portfolio,” a JLR spokesperson told outlets. “To achieve this next phase, we must further simplify our organization, improve efficiency, and build greater resilience while adapting to evolving global market conditions.”
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The restructuring follows mounting financial and operational pressures across international markets. Vehicle imports into the U.S. carry a 10% tariff rate, narrowing profit margins. In its domestic market, JLR faces intensifying competition from lower-cost Chinese electric vehicle imports, including Chery’s Jaecoo 7 SUV.
The cost-cutting push also comes in the wake of a major cyberattack late last year that forced JLR to temporarily halt production across several international facilities, contributing to a 27% drop in output and an estimated $2.5 billion, or £1.9 billion, drag on the broader British economy.
U.K. Business Secretary Jonathan Reynolds confirmed he would meet with JLR Chief Executive Officer PB Balaji and representatives from Unite the Union.
“A company the size of JLR … at various times in its business cycle, the number of people it employs will change,” Reynolds told the BBC on Sunday. “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. But the government will not be giving support if it’s to bail people out.”
Unite General Secretary Sharon Graham stated that union leaders will take part in discussions with JLR executives to ensure hourly factory personnel are protected from compulsory job losses.
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FOX Business has reached out to Jaguar Land Rover for additional comment.
Reuters contributed to this report.
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