Jaguar Land Rover posts £451m quarterly loss after 4,000 job cuts

British automaker Jaguar Land Rover reported a quarterly loss of £451 million for the period from July to September, driven by restructuring costs and the layoff of around 4,000 employees. The company is facing mounting pressure from declining sales in key markets and increased competition from Chinese electric vehicle manufacturers.

According to The Guardian, the company—Britain’s largest automotive employer—saw its revenue rise to £5.9 billion during the quarter. However, it recorded £530 million in costs related to the job cuts, which were announced near the end of the period amid challenging business conditions.

Jaguar Land Rover said it expects most of the job reductions to be achieved through voluntary redundancy programs, confirming that 3,000 employees have already left, with most expected to depart by the end of November.

The company added that its operating activities generated a modest profit when restructuring costs are excluded, but weaker sales in China and the Middle East weighed on its financial performance.

European automakers are under increasing pressure from strong competition by Chinese firms, as they ramp up investment in electric vehicles and transition to low-emission technologies.

In this context, Jaguar Land Rover CEO Bipin Balaji called on the UK and European Union to strengthen cooperation and avoid new trade barriers, warning that rising competition from Chinese carmakers requires joint efforts to support Europe’s electric vehicle industry.

Balaji said, "The time has come to enhance the entire electric vehicle ecosystem," stressing the importance of collaboration between the UK and EU to ensure the development of this ecosystem and to give companies enough time to turn investment plans into tangible results.

Automakers are also urging the UK and EU to delay the introduction of rules of origin, set for January 1, which could impose a 10% tariff on electric vehicles traded between the two sides if battery component requirements are not met, especially for batteries imported from Asia.

The EU is also considering implementing 'Made in Europe' rules, which could exclude UK-made vehicles from benefiting from sector support and subsidies.

Jaguar Land Rover is owned by India’s Tata Group. The company had previously bet on the Chinese market for growth, but wrote off billions of dollars in investments in 2019 as competition intensified and new Chinese automakers emerged, leading to significant overcapacity in the market.

The company is now seeking to strengthen its presence in the US market and is in talks with Stellantis, owner of the Chrysler brand, to manufacture Land Rover vehicles in the United States for the first time.