Jaguar Land Rover to Cut Up to 4,000 UK Jobs as Tata Motors Tightens the Screws on Costs

The automaker employs around 34,000 people in the UK across facilities in the West Midlands and Halewood in Merseyside, while supporting an estimated 120,000 jobs through its domestic supply chain, the report added.

The planned workforce reduction comes as Chief Executive PB Balaji, who took over the role last year after serving as Tata Motors' finance chief, seeks to improve profitability and reduce costs. Tata Motors has increased pressure on JLR management following a downturn in performance, according to the report.

JLR's revenue declined nearly 10 per cent in the quarter ended June 2026, while pre-tax profit fell by more than two-thirds to £109 million. The company is targeting approximately £1.7 billion in savings over the next two years and aims to lower its break-even level to 300,000 vehicles annually.

In a statement cited by the report, JLR said it needed to adapt to changing global market conditions by simplifying its organisation, improving efficiency and strengthening resilience. It has opened a voluntary redundancy programme for salaried and management employees and will share further details with staff.

JLR has also been affected by a 10 per cent US tariff on British car imports; North America accounts for 29 per cent of the company's global sales and remains its largest market.

How large the cyberattack actually was: The report notes JLR was "additionally impacted by a cyberattack last year," but the scale is worth spelling out. The August 2025 breach — claimed by the Scattered Lapsus$ Hunters group — forced JLR to shut its entire global IT network, halting production at all UK plants (Solihull, Wolverhampton, Halewood) for roughly five weeks, from September 1 until early October. Zero vehicles were produced during that stretch against a normal output of around 1,000 cars a day. Industry estimates put the total cost at close to £1.9 billion, making it the most economically damaging cyberattack in UK corporate history; JLR's own Q4 2025 production fell 43 per cent year-on-year, with retail sales down 25 per cent. The UK government stepped in with a £1.5 billion loan guarantee to support JLR and its supply chain through the disruption. That single event, layered on top of tariff pressure and softer demand, is a significant part of why the balance sheet has deteriorated enough to prompt this redundancy programme.