JLR workforce shrinks for first time since pandemic

Jaguar Land Rover (JLR) ended FY26 with 42,850 employees, a 3% reduction from the start of the year, marking its first workforce decline since the COVID-19 pandemic. The Tata-owned luxury carmaker increased its severance costs to £58 million (₹742 crore) as part of cost-cutting efforts to offset higher US tariffs and cyberattack-related expenses under new CEO P.B. Balaji, who took over in November 2025. The downsizing followed a £800 million (₹10,233 crore) cost surge in FY26, prompting JLR to target £1.7 billion (₹21,745 crore) in savings to improve margins and reduce breakeven sales to 300,000 cars annually. Nearly 500 managers left under voluntary redundancy programs by October 2025, while Tata Consultancy Services (TCS) also cut 12,000 jobs, reducing its workforce by 3% to 617,437 employees. US tariffs on JLR imports rose from 2.5% to 27.5%, with a 10% tariff under the UK-US Free Trade Agreement, costing the company £600 million after mitigation efforts. A September cyberattack further strained operations, contributing to Tata Motors’ first annual revenue decline in five years—down 8% to ₹3.35 trillion—and an operating loss of ₹1,377 crore, reversing a ₹19,394 crore profit in FY25. JLR’s sales dropped 23% to 308,000 units. Balaji highlighted ongoing challenges, including cost inflation, slow electric vehicle adoption, and China’s luxury car tax adjustments, but emphasized investments in IT security and efficiency. Analysts noted the restructuring aims to improve profitability through leaner operations, better inventory control, and stronger dealer support. The company plans to build a leaner cost structure to navigate disruptions from cyber incidents, supply-chain volatility, and tariffs, aiming for long-term margin improvement and a healthier retail model.