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JLR to cut up to 500 management jobs amid US tariff impact

JLR to cut up to 500 management jobs amid US tariff impact

Time of India3 days ago
Jaguar Land Rover
(JLR) is set to cut up to 500 management-level jobs in the UK, as the company grapples with the impact of US trade tariffs and a decline in sales,
BBC
reports. The job reductions, amounting to roughly 1.5 per cent of its British workforce, will be implemented through a voluntary redundancy scheme, the company said, describing the move as 'normal business practice.'
The announcement comes days after the carmaker reported a fall in sales during the April–June quarter, citing disruptions from paused exports to the United States due to tariffs, as well as the phased withdrawal of older Jaguar models. JLR had temporarily halted US-bound shipments after tariffs on UK-made vehicles were raised by the Trump administration. Although tariffs have since been reduced from 27.5 per cent to 10 per cent following a trade deal between the UK and US, they still mark a significant increase from the previous 2.5 per cent rate.
Tariffs to blame
Professor David Bailey of Birmingham Business School said the tariffs have played a 'big role' in the company's decision. 'JLR had been reporting record profits — £2.5 billion in the year to March, its best in a decade — and was hiring in preparation for increased electric vehicle production,' Bailey said. 'The sudden tariff hike has clearly disrupted plans.'
He also noted that JLR's popular Defender model, manufactured in Slovakia, continues to face the full 27.5 per cent tariff in the US, adding further pressure.
Labour MP Preet Kaur Gill, representing Birmingham Edgbaston, acknowledged the importance of the
UK-US trade deal
in easing the tariff burden. 'It helped save 12,000 jobs,' she said on BBC Politics Live. 'Our focus remains on sustaining this relationship to support key employers like JLR.'
JLR employs more than 30,000 people in the UK and operates major facilities in Solihull, Wolverhampton, and Halewood. The company builds several Range Rover SUV models in the country and has been increasingly shifting toward electric vehicle production.
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