Jaguar Land Rover: 4500 jobs to go in shake-up

Published: 10 January 2019

 JLR announces 4500 job cuts
 Follows 1500 cuts last year
 Car maker slips into the red 

Jaguar Land Rover has confirmed it will cut 4500 jobs as it wrestles with a perfect storm of weakening demand for its premium cars, especially in China, the uncertainties of Brexit and the rising costs of developing the next generation of cars for the electric age.

The job losses were widely predicted, after the company revealed last year it had to make significant cuts to stay in business. It has already shed around 1500 jobs in 2018, out of a total UK workforce of around 40,000. 

They build more than 600,000 cars a year, exporting over 80% of output to 129 countries around the globe. It's big business and one of the crown jewels in the UK's manufacturing landscape, which is why this story has led most TV news bulletins this morning.

The car industry and Brexit: an explainer

Jaguar Land Rover job cuts: sparked by falling profits

In the third quarter of 2018, the UK's largest car maker posted a £90 million loss - a big swing in fortunes from the year before, when it made a £385m profit.

Electric cars like the Jaguar i-Pace aren't cheap to develop

Electric cars such as the Jaguar i-Pace (above) aren't cheap to produce, and JLR is grappling with an international footprint to ensure it's building its growing range of vehicles in territories where it makes sense, near customers and where the business case is strongest. It's already moved all Land Rover Discovery production overseas to eastern Europe.

'We are taking decisive action to help deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry,' said chief executive Ralf Speth.

The jobs will be lost mostly in office-based roles, including management, marketing and support staff, the company pledged. It's hoping that many will go through a voluntary redundancy programme.

By Tim Pollard

Editorial director of CAR's digital publishing arm. Motoring news magnet

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