Jaguar Land Rover to cut approximately 4,000 jobs over the next two years

British premium automaker Jaguar Land Rover (JLR) plans to cut around 4,000 jobs globally over the next two years. The company says the decision is part of a broader plan to cut costs and improve competitiveness.

JLR, which is owned by India's Tata Motors, aims to achieve savings of about £1.7 billion, or roughly $2.3 billion, through cost cuts. The company also wants to lower the minimum production level needed to avoid losses to around 300,000 vehicles.

Jaguar Land Rover employs about 40,000 people globally, of whom around 30,000 are in the UK. As a result, the planned cuts will have a significant impact on the company's UK workforce as well.

The company made the job cuts announcement at a time when UK Chancellor John Healey was in nearby Coventry discussing measures to boost economic growth.

According to JLR, despite the cost cuts, the company plans to launch five new products over the next 12 months. The changes will also allow the company to invest £15-18 billion over the next five years in electrification, digital technology, advanced manufacturing and improving the customer experience.

Cost optimization is especially important for the company amid strong competition in the auto industry, the shift toward electric vehicles, and rising production costs. JLR is trying to cut operating costs while continuing to invest in next-generation vehicles and technologies.

UK Business Secretary Jonathan Reynolds said he plans to meet with JLR CEO PB Balaji this week to discuss the planned job cuts. His meeting with the company was arranged after news of the job cuts became public.

The key challenge for JLR now is maintaining a balance between cost-cutting and long-term investment. The company hopes the planned restructuring will improve its financial sustainability and free up resources needed for developing new products and technologies in the future.