Jaguar Land Rover to cut 4,000 jobs over two years

Jaguar Land Rover (JLR) is to cut 4,000 jobs over the next two years as the carmaker faces growing pressure from Chinese competition, US tariffs and the shift to electric vehicles.

Most of the redundancies will affect staff at the company's UK head office. JLR employs about 43,000 people worldwide.

The company has also been dealing with the fallout from a cyber-attack last year that forced it to halt production for more than a month, the BBC reports.

Chief executive PB Balaji said JLR was "committed to supporting everyone with care, fairness and respect" during the redundancy process.

The company hopes to achieve the cuts through voluntary redundancies, with employees able to apply until October 4. However, compulsory redundancies could follow if necessary.

JLR expects the measures to save £1.7 billion over the next two years.

The company has been losing sales to Chinese rivals, which JLR had previously regarded primarily as a growth market.

US tariffs have also increased pressure on the carmaker. Unlike some competitors, JLR does not have a manufacturing plant in the US.

Former BMW director Ian Robertson told the BBC's Today programme that JLR should have followed rivals such as BMW and Mercedes by producing cars in the US.

He also said JLR had been "somewhat late to the party" in developing electric vehicles, while Brexit had also affected the company.

Chief Treasury Secretary Emma Reynolds said her thoughts were with JLR's workforce and that Business Secretary Jonathan Reynolds was working with the company and trade unions.

The business secretary is due to meet JLR bosses this week to discuss ways of limiting job losses, although he has ruled out a government bailout.

"Death by a thousand cuts"

The job cuts have renewed debate over the UK's zero-emission vehicle (ZEV) mandate, which requires new car and van sales in Britain to become zero-emission by 2035.

Shadow transport secretary Richard Holden blamed the mandate and higher energy costs for putting pressure on the British car industry and said it should be scrapped.

Unite general secretary Sharon Graham has also criticised the policy, arguing that the UK car industry has suffered from years of underinvestment.

However, the UK Sustainable Investment and Finance Association has defended the ZEV mandate, describing it as important for attracting investment into electric vehicle infrastructure and providing a clear path for the growth of the market.

By Aghakazim Guliyev