Business Secretary Jonathan Reynolds is scheduled to meet with executives from Jaguar Land Rover (JLR) and representatives from the Unite union to address the anticipated job cuts at the company. JLR has announced the initiation of a voluntary redundancy program following a cyber attack last year that halted production for over a month. While the company has not disclosed specific numbers, reports suggest that as many as 4,000 jobs may be affected due to tariffs and declining sales.
Reynolds stated that the meeting, set for early next week, will focus on strategies to mitigate job losses, although he ruled out a government bailout for JLR. He emphasized that changes in employment numbers are part of the business cycle for a large company like JLR, which he described as a significant British success story.
He indicated that support would not be provided for bailouts but mentioned the possibility of long-term investments in the company's future. The job cuts are expected to primarily affect white-collar positions.
Chancellor John Healey is preparing to deliver a speech in the Midlands, where he will outline plans to enhance economic growth by reevaluating government investment in infrastructure, including transport and housing. The Liberal Democrats have expressed concern over the job cuts, labeling the situation as potentially devastating for JLR employees and urging Healey to offer support.
JLR has stated that the job cuts aim to simplify operations and improve efficiency. A spokesperson confirmed that the voluntary redundancy program is open to salaried and management staff, with the possibility of compulsory redundancies not being ruled out. Unite general secretary Sharon Graham remarked that the automotive industry has been facing significant challenges, describing the situation as a 'perfect storm.'
Reynolds also discussed the impact of the UK's electric vehicle sales target on the car industry, noting that he has provided manufacturers with more flexibility to meet these targets. He mentioned ongoing consultations to adapt regulations to align with consumer demand and industry needs.
As of July, JLR had announced plans for fewer than 300 job cuts as part of cost-saving measures. The company employs approximately 30,000 people in the UK and around 10,000 overseas. The cyber attack in September 2025 resulted in a complete shutdown of JLR's manufacturing for several weeks, leading to a 27% decline in production and an estimated cost of £1.9 billion due to the attack and subsequent losses. In June, JLR revealed plans to cut £1.7 billion in costs over the coming years to aid recovery from the cyber attack.