Jaguar Land Rover to cut 4,000 jobs as it reduces costs and competes with China

Jaguar Land Rover will cut 4,000 jobs across its global workforce as Britain’s largest automaker tries to reduce costs and keep pace with Chinese electric-car makers.

The cuts will take place over the next two years as the company targets £1.7 billion ($2.3 billion) in savings. Chief Executive PB Balaji said the industry faced “significant challenges” from technological change, intense competition and geopolitical uncertainty.

Jaguar Land Rover says the savings will allow it to invest £15 billion to £18 billion over the next five years in electrification, digital technologies and other areas. The company makes the Range Rover, Discovery and other luxury SUVs, but has reported falling profits and sales as it contends with cheaper Chinese EVs, rising costs and the effects of U.S. President Donald Trump’s tariffs.

The tariffs impose a 10% tax on British-made cars, rising to 27.5% after the first 100,000 vehicles produced in a year. Sales also suffered last year when a cyberattack halted production for a month. Owned by India’s Tata Motors, Jaguar Land Rover produces most of its vehicles at factories in the U.K., and most of the job cuts are expected to affect its British operations.

The announcement came as Treasury chief John Healey pledged to support Britain’s sluggish economy and help businesses manage rising costs. Prime Minister Andy Burnham’s office said the government would not consider a bailout for the company. The move follows Volkswagen’s announcement last week of a plan to cut 50,000 jobs, reduce its model range and end production at four German plants.

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The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geopolitical uncertainty.