Jaguar Land Rover to Cut 500 Management Positions After Sales Decline

Jaguar Land Rover (JLR) has announced plans to cut 500 management positions following a 15 per cent drop in retail sales during the first quarter of the year. This move comes amid challenges posed by US import tariffs and the planned discontinuation of older Jaguar models. The company has confirmed that the cuts will be implemented through a voluntary redundancy scheme, impacting approximately 1.5 per cent of its British workforce.

According to a spokesperson for JLR, the redundancy programme is designed to align its leadership workforce with the current and future needs of the business. The company has expressed gratitude to the UK Government for expediting the new UK-US trade deal, which has bolstered confidence to invest £3.5 billion annually in its strategic roadmap. The agreement, signed in May, reduced tariffs on British cars and automotive parts from 25 per cent to 10 per cent, allowing up to 100,000 cars to be exported annually to the US under the new terms.

Retail sales for JLR fell to 94,420 units in the three months ending June, a 15.1 per cent decline from the same period last year. Additionally, wholesale volumes dropped by 10.7 per cent, totalling 87,286 units, with exports to North America seeing a 12.2 per cent dip due to the tariffs. Domestic sales in the UK were also significantly impacted, with volumes plunging 25.5 per cent following the cessation of production of models such as the Jaguar F-Type.

As part of its strategy to focus on electric vehicles, JLR recently debuted its new Type 00 model at the Goodwood Festival of Speed. The electric vehicle, which embodies founder Sir William Lyons’s vision of Jaguars being a “copy of nothing,” marks a significant step in the company’s rebranding efforts. The name “00” reflects its zero-emission powertrain and its position as the starting point for a new range of innovative vehicles.

Despite these efforts, the broader automotive industry continues to feel the strain of US tariffs. Volvo Cars reported its first operating loss since its 2021 stock market debut, citing the inability to profitably sell its new ES90 model in the US due to tariffs as high as 147.5 per cent on vehicles built in China. JLR’s announcement, coupled with Volvo’s challenges, underscores the difficult operating conditions facing car manufacturers in global markets.

Still, JLR remains one of the UK’s largest automotive employers, with over 30,000 workers across sites in Solihull, Wolverhampton, and Halewood. The company’s decision to restructure its management signals a determination to adapt to shifting conditions while investing in its ambitious plans for a future centred on electric vehicles.