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Jaguar Land Rover to cut 4,000 jobs over next two years
The BBC says the cuts, focused on Whitley head office in Coventry, raise concerns about potential reductions in research and development and the West Midlands skills base.
Jaguar Land Rover plans to cut 4,000 jobs over the next two years, a move that experts say is creating uncertainty for workers and could affect parts of the supply chain, BBC Business reports. The job losses will mostly hit the Whitley head office in Coventry, and analysts warned that trimming staff in key areas such as research and development could limit the company’s ability to develop new cars.
Experts also tied the decision to broader challenges JLR is facing. The company has been dealing with falling sales, the fallout from a cyber attack that paralyzed production last year, competition from China, and rising energy prices.
JLR is also investing billions to reinvent itself for an electric future, and its next step is scheduled for 6 October when it is set to unveil a new electric car, according to BBC Business. Prof David Bailey said cutting costs when margins are squeezed can be risky if it delays investment, and he argued the British motor industry needs government support to compete in the electric car market.
Another economist cited by the outlet said the cuts could be aimed at making the firm more efficient to help it survive. David Roberts, chairman of Coventry-based Evtec Group, which supplies parts to JLR, called the situation a worrying time, adding to concerns about the regional skills base that supports innovation and component suppliers.