Jaguar Land Rover (JLR), the UK's largest car manufacturer, is anticipated to announce a significant redundancy programme impacting approximately 4,000 jobs, with the government confirming it will not provide a bailout to the company.
The Business Secretary, Jonathan Reynolds, stated that government financial support would not be offered to "bail people out" at the firm. However, he indicated that long-term investment in the future of the industry would be considered.
JLR is expected to formally outline its major redundancy plans on Monday, with workforce reductions projected to occur over a two-year period, according to reports in The Times.
The company has confirmed it is introducing a voluntary departure scheme, offering salaried staff and management team members the opportunity to leave. It has also informed colleagues and trade union partners about the programme.
Mr Reynolds has engaged with JLR chief executive PB Balaji and is scheduled to meet the company’s leadership team early next week. Speaking on Laura Kuenssberg’s show on the BBC, he commented: "A company the size of JLR, which is a huge British success story, at various times in its business cycle, the number of, directly, people it employs will change."
He added: "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. Of course you want to mitigate any job losses."
When questioned about potential financial support to protect jobs, the Business Secretary reiterated: "Not if it’s to bail people out. If it’s about long-term investment in the future, we do invest alongside industry on that."
JLR currently employs around 30,000 people across the UK, with its main manufacturing facilities located in Solihull, West Midlands, and Halewood, Merseyside.
A JLR spokesperson explained the rationale behind the job cuts: "Over the past three years, we have strengthened our House of Brands and transformed our product portfolio for the next generation. As we deliver the next phase of our strategy, we need to adapt to evolving global market conditions while targeting approximately £1.7 billion of savings over the next two years and reduce break-evens to 300,000 vehicles. To achieve this, we must further simplify our organisation, improve efficiency and build greater resilience."
The company also stated it would "share further information with our colleagues first" regarding the voluntary redundancy programme.
A Government spokesperson said: "We understand that this will be an uncertain and concerning time for affected workers, their families and wider communities. We have taken significant action to back the UK automotive industry by lowering electricity bills for manufacturers, providing £4 billion of capital and R&D funding to manufacture zero-emission vehicles (ZEVs) and launching a £2 billion electric car grant to encourage people to buy EVs (electric vehicles)."
Unite general secretary Sharon Graham criticised the situation, stating: "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."
Ms Graham confirmed "intensive Government discussions over the weekend" to mitigate job losses and announced a meeting with the JLR CEO alongside the Business Secretary next week. She highlighted Unite's role in securing a £1.5 billion government facility for JLR after a cyberattack, pledging that the union "will leave no stone unturned to support these workers."
The planned job cuts come as JLR continues its recovery from a major cyberattack that severely impacted production last year, forcing a five-week halt at its UK factories from September 1, leading to significant financial losses and affecting sales in late 2025.
Last month, JLR reported a 9.6 per cent year-on-year fall in revenues to £6 billion for the three months to June 30, accompanied by a 9.2 per cent decline in car volumes. The company recorded a pre-tax profit, before exceptional items, of £109 million for the quarter, a decrease from £351 million a year earlier.
Production has also been disrupted by other factors, including a fire at a supplier’s factory in Norway in March, which briefly paused production for Range Rover and Range Rover Sport models at the Solihull plant. Car sales volumes have also been affected by Jaguar's strategic decision to cease production of several diesel and petrol-run models, including its F-Pace, as part of a broader shift towards electric vehicles to revitalise the brand.
Profit margins for the quarter were also impacted by a one-off provision related to US fuel economy rules, though this was partially offset by reduced US-UK tariffs. Earlier this year, JLR had already announced plans to cut approximately £1.7 billion in costs over the coming years as part of its recovery strategy.
