Business Secretary Jonathan Reynolds will meet with executives from Jaguar Land Rover (JLR) and representatives from the Unite union early next week following the carmaker’s announcement of a voluntary redundancy scheme.
The Coventry-based manufacturer confirmed it is offering voluntary severance to salaried and management staff to “simplify” operations, “improve efficiency and build greater resilience.” Although JLR has not confirmed the total scale of the reductions or ruled out compulsory redundancies, The Times reported that as many as 4,000 predominantly white-collar positions could be cut due to declining sales and the impact of tariffs.
Speaking on the BBC’s Sunday with Laura Kuenssberg, Reynolds said the talks would explore ways to “mitigate any job losses” while ruling out a state bailout.
“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,” Reynolds said. “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.”
Reynolds stated that government support would not be provided “if it’s to bail people out,” but kept open the possibility of “long-term investment in the future” of the automaker. He also noted that he had spoken with West Midlands Mayor Richard Parker about supporting the company and its employees.
The redundancy plans emerge as Chancellor John Healey prepares to deliver a speech in the Midlands on Monday, pledging to stimulate economic growth through revised government valuation methods for transport and housing infrastructure.
Liberal Democrat business spokesperson Sarah Olney described the cuts as “devastating” for JLR staff, urging Healey to use his address to support affected workers and stating: “This development lays bare that the government’s growth mission is falling far short.”
Unite general secretary Sharon Graham said the union had engaged in “intensive” discussions over the weekend regarding job protection, warning that the automotive sector faced a “perfect storm.”
“Death by a thousand cuts has been going on under the nose of successive governments,” Graham said.
Reynolds was also questioned regarding the UK mandate requiring manufacturers to achieve an increasing percentage of zero-emission vehicle sales, culminating in an 80% target by 2030. Reynolds stated he had introduced greater regulatory flexibility upon taking office, noting that an active consultation remains open to adapt policies “to work with where consumer demand is and the industry.”
JLR employs roughly 30,000 people in the UK and about 10,000 abroad. In July, the company had projected that fewer than 300 staff members would depart under previous efficiency plans.
The company is continuing to manage the aftermath of a September 2025 cyber attack that completely halted vehicle assembly for more than a month, driving a 27% decline in overall production. The disruption and lost manufacturing cost an estimated £1.9bn, leading JLR to announce a £1.7bn cost-reduction strategy in June targeting material, warranty, and fixed expenditures.
Source: BBC News — https://www.bbc.com/news/articles/crer948xq00o
