Jaguar Land Rover informed employees and union partners on Saturday that it is opening a voluntary redundancy program for salaried and management team members.

The move comes as the company, owned by India's Tata Motors, seeks to cut costs by about £1.7 billion over two years. Reports from The Times and other outlets indicate the program could affect as many as 4,000 positions, though JLR has not confirmed that figure.

A company spokesperson stated that the program aims to simplify the organization, improve efficiency, and build greater resilience in response to evolving global market conditions. Production facility jobs are expected to remain unaffected.

The announcement follows a cyberattack last September that halted production for more than a month and contributes to ongoing pressures from declining sales, U.S. tariffs, and competition from lower-cost Chinese rivals. Chief Executive PB Balaji had outlined cost-cutting plans in June that included pivoting toward the U.S. market and lowering the break-even sales volume to around 300,000 units annually.

Business Secretary Jonathan Reynolds plans to meet with JLR's chief executive and Unite union leaders early next week to discuss ways to mitigate job losses. Reynolds has ruled out any government bailout, emphasizing the need for the company to become more competitive.

Unite General Secretary Sharon Graham described the situation as part of a broader "perfect storm" in the automotive industry and noted intensive weekend discussions aimed at limiting the impact.

The potential cuts represent a significant portion of JLR's roughly 30,000 UK employees, with most roles likely concentrated in management, research and development, and back-office functions rather than direct manufacturing positions.