Jaguar Land Rover (JLR) is set to cut up to 500 management jobs in the UK, a decision prompted by pressure on sales and profits, partly due to US trade tariffs. The cuts, which amount to about 1.5% of its UK workforce, will be part of a voluntary redundancy programme. This move is seen as part of “normal business practice” as the company adapts to changing market conditions.
JLR reported a decline in sales for the three months to June, influenced by a halt in exports to the US due to tariffs, as well as the phase-out of older Jaguar models. The carmaker had already warned that the 10% tariff imposed by the US on British car exports would negatively impact its profits. Despite this, JLR remains optimistic about future investments, particularly following the UK-US trade agreement that has reduced tariffs on a limited number of vehicles.
The company’s strategy includes a shift towards electric vehicle production, which has led to an increase in the mixed workforce. The ongoing global trade challenges, including the imposition of a 25% tariff on UK car exports earlier this year, have caused significant disruption.
JLR, a key player in the UK automotive sector with over 30,000 employees, continues to face complex market dynamics as it navigates this period of change.
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