Jaguar Land Rover has confirmed its plans to slash 4,000 roles over the next two years in a bid to save £1.7billion after concerning financial results.
The iconic British manufacturer has announced that thousands of jobs will be lost across its global operations.
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CEO PB Balaji acknowledged the impact this would have on colleagues, adding that the company was committed to supporting all employees with fairness and respect.
Mr Balaji, who has been CEO since November last year, said the automotive industry as a whole had faced “significant changes in recent years”.
He put this down to technological changes in switching to electric vehicles, intense competition from Chinese brands, and ongoing geopolitical uncertainty.
As a result of this, JLR is moving forward with its Growth Reimagined strategy to “strengthen our competitiveness and position the business for long-term success”.
It will reduce its organisational complexity and target £1.7billion in savings to lower its break-even point.
This should allow Jaguar Land Rover to become “fitter to compete in a rapidly evolving market”.
Mr Balaji said: “These actions will support continued investment of £15-18billion over the next five years in electrification, digital technologies, advanced manufacturing and enhanced customer experiences.
“As part of this transformation, we will reduce our global workforce by around 4,000 roles over the next two years.”
Jaguar Land Rover plans to launch five new products over the next 12 months, including the Range Rover Electric and highly anticipated Jaguar Type 01.
The CEO said this would “continue to leverage the strength of our brands and renew our focus on North America amongst other markets to help us deliver double-digit revenue growth”.
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Sharon Graham, General Secretary of Unite, said the union had been warning of a “perfect storm” looming over the UK car industry for many years.
She highlighted pressure from underinvestment, “unsustainable” Zero Emission Vehicle mandate targets and some of the highest energy costs in the world.
Ms Graham warned that these factors are “crippling the industry”, adding that it was not fair for workers to continually pay the price for issues out of their control.
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