Jaguar Land Rover to cut 4,500 jobs, mainly in Britain

Tata Motors-owned Jaguar Land Rover has announced plans to cut 4,500 jobs in the U.K. as part of its strategy to achieve cost reduction and cash flow improvements of £2.5 billion in 18 months.

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The workforce would be reduced through a “Voluntary Redundancy Programme,” the company said.

The carmaker has a workforce of about 40,000 in the U.K. The company did not specify the types of jobs that would be affected.

The company has been making losses following a massive drop in demand in China, its biggest market, and concerns on diesel vehicles.

“Jaguar Land Rover is expanding business-wide organisation review aimed at reducing the size of its global workforce by around 4,500 people. This is in addition to the 1,500 people who left the company during 2018,” the company said in a statement.

Leaner organisation

“The next stage of this transformation programme will begin with a voluntary redundancy programme in the U.K. This strategic review will create a leaner, more resilient organisation with a flatter management structure,” the company added.

“We are taking decisive action to deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry,” said Ralf Speth, CEO, JLR.

“The Change to Accelerate” programme combines efficiency measures with targeted investment, safeguarding our future and ensuring that we maximise the opportunities created by growing demand for autonomous, connected, electric and shared technologies,” he added. He said so far this programme had identified over £1 billion of improvements with more than £500 million already realised in 2018. The savings will enable the company fund improvements in technology to safeguard its future, he added.

Later this year, the company would start producing the next generation electric drive units (EDU) at its engine manufacturing centre in Wolverhampton.

The EDUs would be powered by batteries assembled at a new Jaguar Land Rover Battery Assembly Centre located at Hams Hall, North Warwickshire.

The battery assembly centre would be one of the largest of its kind in the U.K., using new production techniques and technologies to manufacture battery packs for future JLRJaguar and Land Rover vehicles.

“The next chapter in the story of Jaguar and Land Rover brands will be most exciting and challenging in our history,” said Dr. Speth.

“Revealing the iconic Defender, investing in cleaner, smarter, more desirable cars and electrifying our facilities to manufacture a future range of British-built electric vehicles will all form part of building a globally competitive and flourishing company,” he added.

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