Jaguar Land Rover to Slash 4,000 Jobs, Says Cyberattack to Blame

Jaguar Land Rover confirmed Monday it will eliminate around 4,000 roles over the next two years, roughly ten percent of its global workforce, as the British luxury carmaker moves to recover from a costly cyberattack and mounting financial pressure. The company framed the reductions as a voluntary redundancy scheme aimed at delivering £1.7 billion (US$2.3 billion) in cost savings.

The Tata Motors-owned manufacturer identified management positions as those most at risk, and local media reports indicate the bulk of the cuts will fall in the U.K., where around 34,000 of JLR's employees are based. The announcement landed just days after Volkswagen said its management and unions had agreed to cut a total of 100,000 jobs by the end of the decade, the largest restructuring in the global auto industry's history.

Chief executive PB Balaji tied the move to broader industry strain. "The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geopolitical uncertainty," he said in the statement. JLR said the actions would "further simplify our organisation, improve efficiency, and build greater resilience," and Balaji pointed to a product-led recovery ahead. "Over the next 12 months, we will launch five new products," he said, adding that a renewed "focus on North America, amongst other markets" would "help us deliver double digit revenue growth."

The restructuring follows a punishing stretch for the carmaker. A major cyberattack halted JLR's British production for more than a month, a stoppage the company now estimates cost £260 million ($351 million). Combined with U.S. tariffs, the disruption pushed JLR to a £244 ($330) million loss for the fiscal year ending in March, a sharp swing from the £1.8 billion ($2.4 billion) net profit it posted in 2024-25.

U.K. Business minister Jonathan Reynolds is scheduled to meet JLR executives this week to discuss the job losses. Balaji said the company recognizes the news "will be difficult" for affected staff and is "committed to supporting everyone with care, fairness and respect."

The announcement comes as JLR works to move past the cyberattack. The company opened orders last week for its fully electric Range Rover, part of the product push Balaji cited as central to returning the business to growth.