Jaguar Land Rover job cuts UK — British luxury carmaker Jaguar Land Rover (JLR) is set to cut up to 500 management jobs in the UK after reporting a sharp drop in global sales, driven largely by tariffs imposed by former U.S. President Donald Trump.
The job cuts represent around 1.5% of JLR’s 33,000 UK workforce and will be implemented through a voluntary redundancy program targeting managerial positions. The decision comes as part of wider cost-cutting efforts in response to declining margins and trade disruptions.
Sales Drop After Tariff Pause on US Shipments
JLR experienced a 15.1% decline in global sales during the quarter ending in June, following a temporary suspension of shipments to the U.S. in April. The halt was in reaction to a 25% tariff imposed by Trump on foreign-made vehicles. Although exports resumed in May, the damage was already reflected in the quarterly figures. The U.S. market accounts for over 25% of the company’s sales.
UK-US Trade Deal Eases Pressure
A newly agreed trade deal between Donald Trump and UK Prime Minister Keir Starmer offers temporary relief. Under the deal, the UK can export up to 100,000 vehicles annually to the U.S. at a reduced 10% tariff, significantly lower than the 27.5% imposed on other foreign automakers.
Peter Mandelson, Britain’s ambassador to the U.S., confirmed that the deal prevented immediate job losses at JLR’s West Midlands facility. JLR CEO Adrian Mardell stated the agreement would support approximately 250,000 jobs across the UK car industry.
Profit Margins and Economic Pressures Weigh Heavy
The carmaker has adjusted its profit expectations for the year, slashing forecasted EBIT margins from 10% to between 5% and 7%, citing ongoing tariff uncertainty. JLR had previously achieved an 8.5% margin in the fiscal year ending March 31.
In North America, wholesale sales dropped 12.2%, while UK sales plunged 25.5% in Q2 due to the phase-out of older Jaguar models. The company halted UK sales of new vehicles in late 2024 in preparation for its upcoming lineup of electric vehicles, expected to launch in 2026.
The job cuts also come as British businesses face increased national insurance costs and an uptick in the UK unemployment rate, which rose to 4.7% in the three months to May.
A JLR spokesperson described the redundancies as “part of normal business practice” through limited voluntary programmes.
