LONDON — The UK government ruled out a bailout for Jaguar Land Rover, Britain's largest car manufacturer, as the company prepares to cut 4,000 jobs over two years.
Business Secretary Jonathan Reynolds confirmed the position after meeting with JLR chief executive PB Balaji. The company is expected to formally announce the redundancy program Monday, targeting salaried and management staff across its UK operations.
"The number of people it employs will change at different points in its business cycle," Reynolds said on BBC's Laura Kuenssberg program. He said the government would consider long-term investment in the sector "alongside industry" but would not fund redundancies.
The cuts are part of a broader strategy to save approximately £1.7 billion over two years and reduce the company's break-even point to 300,000 vehicles annually. JLR said the measures are necessary to adapt to global market conditions, simplify operations and build resilience.
JLR employs about 30,000 staff across the UK, with major manufacturing plants in Solihull, West Midlands, and Halewood, Merseyside. The company has been recovering from a significant cyberattack last year that suspended production.
Unite General Secretary Sharon Graham criticized successive governments for allowing the crisis to develop. "Death by a thousand cuts has been going on under the nose of successive governments," she said, citing years of under-investment, "unsustainable" zero-emission vehicle mandates and high industrial energy costs.
The government highlighted existing support for the UK automotive sector, including reduced electricity bills for manufacturers, £4 billion in capital and research and development funding for zero-emission vehicles, and a £2 billion grant program for electric vehicle purchases.
