Jaguar Land Rover Set To Cut 4,000 Jobs In The Next 2 Years

According to The Times, employees were warned on Friday that they could expect an announcement regarding a reorganization on Monday. The company later confirmed to Bloomberg that a voluntary departure scheme is being introduced. Jaguar Land Rover aims to save the equivalent of 2 billion euros in costs over a two-year period. The company itself has not yet commented on the exact number of jobs at risk.

Jaguar Land Rover has around 33,000 employees in the United Kingdom and is owned by the Indian Tata Motors. The reorganization is a blow to Prime Minister Andy Burnham, who took office in Downing Street this summer with the promise to reindustrialize the country and create more jobs. Business Secretary Jonathan Reynolds will also talk with management and unions in the coming days, it was announced this weekend.

Jaguar Land Rover’s problems, however, appear to be deep-rooted. Revenue and results showed sharp declines in the latest quarterly figures, partly due to disappointing demand from China. Last year, the automaker was also hit by a cyberattack that temporarily brought global production to a complete standstill.

Earlier this month, the very first electric Range Rover went on sale. It costs the equivalent of nearly 180,000 euros. Due to this high price tag, the car barely competes with cheaper SUVs from China that are currently conquering the British market.

• Also See: The Reasons Behind Jaguar Land Rover’s Greater Bet On America