Tata-owned JLR to cut around 4,000 jobs in UK
What's the story
Jaguar Land Rover (JLR), the UK's largest car manufacturer, is planning to cut around 4,000 jobs over the next two years. The decision comes as a response to rising costs and declining sales. The company has warned its staff about the impending announcement of the redundancy program, which is expected on Monday.
Cost-cutting strategy
Voluntary redundancy program
JLR has announced a voluntary redundancy program as part of its plan to save €1.7 billion ($2.3 billion) over two years.
The company aims to lower its break-even point to 300,000 vehicles and simplify its business in response to global market conditions.
However, the company did not specify how many job cuts are planned under this scheme.
Sales slump
Revenue dropped by nearly 10% in the last quarter
JLR, which employs some 33,000 people in the UK, has seen its revenue drop by nearly 10% in the last quarter. Its pretax profit also fell by a whopping 69% to €109 million.
The company is also facing competition from cheaper Chinese SUVs and higher US tariffs on imports.
Last year, JLR's global operations were disrupted by a cyberattack.