Business Secretary Jonathan Reynolds is set to hold emergency meetings with the leadership of Jaguar Land Rover following the carmaker’s announcement of sweeping job cuts.
Reynolds has already spoken to PB Balaji, chief executive of Britain’s biggest carmaker, and is expected to meet company bosses in the coming days.
Jaguar Land Rover is preparing to launch a voluntary redundancy programme aimed at cutting costs amid falling sales and the ongoing impact of US tariffs.
The manufacturer’s bosses are due to formally announce the redundancy programme on Monday, according to the Sunday Times.
JLR directly employs 34,000 workers across its three UK sites and supports a further 120,000 British jobs through its supply chain.
Tata Motors, the Indian parent company of JLR, is putting pressure on Balaji to reduce costs after he was brought in last year to shore up the firm’s balance sheet.
JLR was also forced to pause production at its factories for five weeks following a cyberattack in September last year, compounding its financial difficulties.
Donald Trump’s tariffs on UK car imports have weighed heavily on the group’s performance in North America, its biggest market, which represents 29 per cent of total sales.
The manufacturer saw its revenue fall by nearly 10 per cent in the three months to June, while pre-tax profit slumped by more than two thirds to £109m.
A spokesperson for JLR said: “Over the past three years, we have strengthened our House of Brands and transformed our product portfolio for the next generation.”
The spokesperson added: “As we deliver the next phase of our strategy we need to adapt to evolving global market conditions while targeting approximately £1.7 billion of savings over the next two years and reduce break-evens to 300,000 vehicles.”
JLR’s statement continued: “To achieve this, we must further simplify our organisation, improve efficiency and build greater resilience.”
A government spokesperson said ministers have already taken measures to support the UK car industry, including a cut to energy bills and £4bn of capital and research and development funding for zero-emission vehicles.
“We understand that this will be an uncertain and concerning time for affected workers, their families and wider communities,” the government spokesperson said.
Sharon Graham, general secretary of the Unite union, confirmed she will meet with both Reynolds and Balaji next week to discuss the situation facing workers.
Graham did not hold back in her assessment of the broader industrial picture, stating: “Death by a thousand cuts has been going on under the nose of successive governments.”
The announcement marks one of the most significant moments of strain for British manufacturing in recent years, with tens of thousands of livelihoods potentially at stake.