Jaguar Land Rover, the British luxury car maker owned by India’s Tata Motors, announced plans to cut approximately 4,000 jobs, representing around 10% of its global workforce. This reduction will take place over the next two years as part of a wider restructuring aimed at saving £1.7 billion ($2.3 billion). The company faces stiff challenges from competition posed by lower-cost Chinese car manufacturers, the repercussions of a major cyberattack, and tariffs imposed by the U.S. government.

CEO PB Balaji emphasized the difficult environment for the auto industry, characterized by rapid technological changes and geopolitical uncertainties. In addition to workforce reductions, Jaguar Land Rover intends to lower its break-even production volume to 300,000 vehicles and plans to introduce five new models over the coming year. While these moves are designed to improve efficiency and competitiveness, the company has acknowledged the hardship these changes will cause for affected employees.

The job cuts place further pressure on the UK’s automotive sector, which has seen similar cost-saving measures recently from other luxury carmakers like Aston Martin and Bentley. UK Business and Trade Minister Jonathan Reynolds has ruled out a government bailout but plans to engage with Jaguar Land Rover executives to discuss the redundancies. The government highlighted ongoing support for the industry through initiatives such as reduced electricity costs for manufacturers and funding to promote electric vehicle development.

Jaguar Land Rover’s decision aligns with broader trouble facing global automakers amid rising tariff barriers and increased competition from China. Just days earlier, German auto giant Volkswagen announced plans to eliminate 50,000 jobs as part of its own major transformation effort. These developments suggest a challenging period ahead for the global auto industry as companies attempt to navigate evolving market dynamics and political pressures.