Tata-Backed JLR Plans Up to 4,000 UK Job Cuts Amid Rising Costs, Tariffs: Report

Jaguar Land Rover (JLR) -- the Tata Motors-owned luxury vehicle manufacturer -- is preparing to cut about 4,000 jobs in the United Kingdom over the next two years as it grapples with rising costs, weaker demand and the impact of US import tariffs, according to a report. The Times reported that JLR is expected to formally announce a redundancy programme on Monday after informing employees on Friday that the move was imminent.

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, it 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 and 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. In addition, the company is aiming to achieve approximately £1.7 billion in savings over the next two years and 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.

The company said it had opened a voluntary redundancy programme for salaried and management employees and would provide further details to staff. Additionally, 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. However, the carmaker was additionally impacted by a cyberattack last year that disrupted operations for several months.

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