Jaguar Land Rover to Cut Up to 500 UK Management Jobs Amid Trade Pressure

Jaguar Land Rover (JLR) is set to reduce its UK workforce by up to 500 management roles as part of a voluntary redundancy programme, the company confirmed on Monday. The cuts, which represent less than 1.5% of JLR’s British staff, come as the carmaker navigates a decline in sales and rising costs linked to new US trade tariffs.

The move follows a drop in JLR’s quarterly sales, attributed in part to the temporary suspension of US exports and the planned phase-out of several older Jaguar models. While the company described the redundancies as “normal business practice,” the timing has raised concerns about broader industry headwinds.

In a statement, JLR said it “regularly offers eligible employees voluntary redundancy,” adding that the current programme reflects the company’s evolving business needs and long-term plans.

The cuts come just weeks after US President Donald Trump imposed a 10% tariff on British-made vehicles exported to the US – a sharp increase from the previous 2.5% levy. The decision led JLR to halt shipments to its largest export market, exacerbating financial pressure.

Although a recent UK-US trade agreement reduced the new tariff to 10% for up to 100,000 British-made vehicles – in line with the number shipped last year – the hike still presents a significant challenge.

Professor David Bailey of Birmingham Business School said the tariffs were “a major factor” behind the job losses, despite JLR recently posting its strongest financial results in a decade, with £2.5 billion in profits for the year ending March.

“JLR has been hiring in anticipation of ramping up electric vehicle production, but the tariff increases have definitely forced a rethink,” Bailey told the BBC.

JLR, which employs more than 30,000 people in the UK, has manufacturing facilities in Solihull, Wolverhampton, and Halewood. The company builds several popular models locally, including the Range Rover. However, key models such as the Defender – manufactured in Slovakia – now face a steep 27.5% tariff when exported to the US.

The Prime Minister’s office dismissed suggestions that the layoffs were a political setback for Sir Keir Starmer, who visited a JLR site in May and pledged support for British manufacturing jobs. A spokesperson said the trade deal with the US was “jobs saved, not job done,” and reiterated that the company was adjusting to difficult global conditions.

Meanwhile, Preet Kaur Gill, Labour MP for Edgbaston, emphasized the value of the UK-US trade negotiations. “Jaguar Land Rover is a key employer in my region,” she said. “Securing tariff reductions has protected thousands of jobs – but continued partnership is vital.”

JLR says it remains committed to its long-term investment strategy, including a pledge to inject £3.5 billion annually into its transition to electric vehicles.