LONDON (BE Auto Desk): Jaguar Land Rover (JLR) plans to eliminate around 4,000 jobs worldwide over the next two years as the British luxury automaker moves to reduce costs, strengthen competitiveness and lower the production level needed to break even.
The company is targeting £1.7 billion ($2.30 billion) in savings as part of the restructuring. The measures are expected to bring JLR’s break-even point down towards 300,000 vehicles.
JLR has a workforce of roughly 40,000 employees globally, including about 30,000 people in the UK, where the company operates major manufacturing and other facilities across central England.
The automaker, which is owned by India’s Tata Motors, announced the planned workforce reductions as the UK government continues to focus on measures aimed at supporting economic growth and industrial competitiveness.
JLR also said it intends to introduce five new products over the next 12 months. At the same time, the company plans to invest between £15 billion and £18 billion over the next five years in areas including vehicle electrification, digital technologies, advanced manufacturing and improvements to customer experience.
The restructuring comes as the company seeks to create a more competitive cost base while continuing to invest in its future product portfolio and technological development.
UK Business Minister Jonathan Reynolds said on Sunday that he would meet JLR Chief Executive PB Balaji during the week to discuss the planned job reductions, following reports about the company’s intentions.
The job cuts represent a significant workforce reduction for JLR as it attempts to balance near-term cost pressures with its longer-term investment plans in electrification and advanced automotive technologies.
