Europe's Auto Bloodbath Deepens: Jaguar Land Rover To Axe 4,000 Jobs After VW Targets 50,000 More Job Cuts
The short version
- Britain's largest carmaker is confronting intensifying Chinese competition and adding to the broadening wave of planned and ongoing layoffs across European automakers.
- The job cuts represent about 10% of Jaguar Land Rover's global workforce and is part of a $2.3 billion savings plan, Chief Executive Officer P B Balaji said Monday.
- The layoffs are not expected to begin immediately.
- The workforce restructuring comes as the struggling automaker faces a sharp deterioration in earnings.
- Revenue fell 10% in the latest quarter, while pretax profit plunged 69% to 109 million pound sterling.
The story
Europe's industrial base faces yet another setback, with Bloomberg reporting that Jaguar Land Rover plans to cut 4,000 jobs over the next two years. Britain's largest carmaker is confronting intensifying Chinese competition and adding to the broadening wave of planned and ongoing layoffs across European automakers.
The job cuts represent about 10% of Jaguar Land Rover's global workforce and is part of a $2.3 billion savings plan, Chief Executive Officer P B Balaji said Monday. The layoffs are not expected to begin immediately.
The workforce restructuring comes as the struggling automaker faces a sharp deterioration in earnings. Revenue fell 10% in the latest quarter, while pretax profit plunged 69% to 109 million pound sterling.
On Monday, CEO P B Balaji said, "The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geopolitical uncertainty."
It's not just a BYD Motors invasion of Europe that is pressuring Jaguar Land Rover. As the Tata-owned automaker warned, pressures are developing from several directions. Higher tariffs have complicated business in the US, its largest market. A fire at a key parts supplier and disruption from the Middle East conflict have compounded the damage caused by the cyberattack.
In recent weeks, Europe's automotive industry has continued its death spiral, with news that Volkswagen pushed ahead with its plan to eliminate another 50,000 jobs, adding to soaring job losses across the industry.
A sustained downturn in Europe's automotive industry raises risks across the broader industrial base. Lower vehicle output would weaken demand for steel, aluminum, glass, chemicals, semiconductors, batteries, and other components, putting pressure on supplier margins and investment. If prolonged, that weakness could trigger additional production line closures and worker losses. That spiral appears to be already underway, eroding manufacturing capabilities that also support defense production.
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