Up to 500 managerial positions at Jaguar Land Rover (JLR) will be eliminated in the UK as the automaker deals with the impact of US trade tariffs on sales and earnings. JLR stated that it will implement a voluntary redundancy program, and the layoffs will not affect more than 1.5% of its British employees. The action was characterized as “normal business practice” by the firm.
Last week, the automaker disclosed a decline in sales for the three months leading up to June, which was partially attributed to the planned wind-down of older Jaguar models and the suspension of shipments to the US due to tariffs.
Last month, the business issued a warning that its profitability will be negatively impacted by US President Donald Trump’s decision to put a 10% tax on British automobiles shipped to the US.
JLR stated that the current program was founded on “the business’s current and future needs” and that it “regularly offers eligible employees voluntary redundancy.” It further stated that it has “confidence to invest £3.5bn” annually due to the UK-US trade agreement on auto imports.
Professor David Bailey of the Birmingham Business School, an expert in the automotive business, stated that the tariffs “play a big role” in the employment losses. He told the BBC’s Wake Up to Money show, “JLR was reporting bumper profits – £2.5bn profit to the year ending in March – which was its best results in a decade,” not too long ago.
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