UK business secretary rules out bailout for Jaguar Land Rover as it plans 4,000 job cuts

Telegraph Reporters Sun, September 6, 2026 at 8:31 AM PDT 3 min read

The Business Secretary has ruled out financial support for Jaguar Land Rover (JLR) to protect thousands of jobs.

Jonathan Reynolds said the Government would not stand in the way of redundancies if that was what was needed to make the carmaker competitive.

It follows reports that the UK's largest car manufacturer is to cut 4,000 jobs, with a major redundancy programme expected to be confirmed on Monday.

JLR confirmed it was opening a voluntary redundancy programme offering salaried and management team members the opportunity to leave the business.

Mr Reynolds said he had spoken to JLR chief executive PB Balaji and will meet the firm's leadership team early this week.

He told the BBC: "A company the size of JLR, which is a huge British success story, at various times in its business cycle, the number of, directly, people it employs will change.

"If this is about making sure over time that the workforce is right to make the business as competitive as possible, that's the conversation we need to have.

"Of course you want to mitigate any job losses."

Asked if there could be financial support to protect those jobs, he added: "Not if it's to bail people out.

"If it's about long-term investment in the future, we do invest alongside industry on that."

Market Challenges

JLR's largest market is North America and the company has been rocked by Donald Trump's 10% tariff on vehicle imports.

At the same time, the company continues its recovery from a major cyber attack that forced it to halt production last year and is facing intense competition from Chinese rivals at home. Jaecoo's SUVs, which have been dubbed "Temu Range Rovers," have become best sellers in Britain.

Workforce and Operations

JLR employs about 30,000 people across the UK and makes most of its cars in factories in the country, including at Solihull, West Midlands, and Halewood, Merseyside.

A JLR spokesman said the company needed to "adapt to evolving global market conditions while targeting approximately £1.7bn of savings over the next two years."

"To achieve this, we must further simplify our organisation, improve efficiency and build greater resilience."

The company confirmed it had informed colleagues and trade union partners of the voluntary redundancy programme, adding it would "share further information with our colleagues first."

Financial Performance

JLR revealed last month that revenues fell by 9.6% year-on-year to £6bn for the three months to June 30, driven by a 9.2% decline in car volumes.

JLR briefly paused production for its Range Rover and Range Rover Sport models at its Solihull plant in March after a major fire at the factory of a component manufacturer in Norway.

Car sales volumes have also been impacted by Jaguar's decision to stop the production of numerous diesel and petrol-run models, including its F-Pace.

Jaguar is shifting its focus to electric models as part of a strategy overhaul to boost the brand's fortunes.

JLR reported a pre-tax profit, before exceptional items, of £109m for the quarter, compared with a £351m profit a year earlier.

Try full access to The Telegraph free today. Unlock their award-winning website and essential news app, plus useful tools and expert guides for your money, health and holidays.