Jaguar Land Rover opens voluntary redundancy programme amid falling sales

Jaguar Land Rover (JLR) has opened a voluntary redundancy programme for salaried and management staff as it looks to cut costs and make its business more efficient.

JLR confirmed the move to the BBC, saying it aims to “simplify” the business, “improve efficiency and build greater resilience.”

“We informed our colleagues, and trade union partners that JLR is opening a voluntary redundancy programme offering salaried and management team members the opportunity to leave the business,” a JLR spokesperson told the news outlet.

“We will share further information with our colleagues first.”

Falling sales and US tariffs add pressure

The move follows a report by The Sunday Times that JLR could cut up to 4,000 jobs due to weaker sales and US tariffs.

A 10% tariff on vehicles imported into the US has added to the pressure on JLR’s luxury car business.

JLR’s revenue fell 9.6% year on year to £6 billion in the first quarter. Its annual wholesale vehicle sales also fell 9.2%.

The company is also dealing with the impact of a major cyber-attack last year, which forced it to stop production at factories in the UK, Slovakia, Brazil and India through September.

JLR has not said how many jobs could be affected and has not ruled out compulsory redundancies.

UK government to meet JLR and union

UK Business Secretary Jonathan Reynolds is due to meet JLR bosses and Unite union representatives to discuss the impact of the job cuts.

Reynolds has previously ruled out financial support to prevent the redundancies.

“Not if it's to bail people out,” he said as quoted by 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 34,000 people in the UK. The job cuts come as the British government pushes plans to “reindustrialise” the country.

JLR joins other major carmakers, including Volkswagen, in cutting jobs as the industry faces weaker demand, rising costs, tariffs and growing competition.