by Jaguar Land Rover cuts managers due to sales decline
Jaguar Land Rover continues to face pressure due to a series of challenges in recent months. Declining sales and operational difficulties are creating serious challenges for the company in the near future.
At the beginning of the month, the company published unsatisfactory results: sales volumes fell by 15.1% to 94,420 units. The main reasons are the “planned discontinuation of production of old Jaguar models” and the impact of high tariffs imposed by the Trump administration.
Impact of tariffs on business
Following the tariff increase in April, JLR temporarily suspended shipments to the USA. This explains the 12.2% drop in sales volumes in North America compared to last year.
According to the latest data, the company is cutting hundreds of jobs in the UK. Up to 500 managers could be laid off under a “voluntary exit” program. This represents less than 2% of the total workforce in the country.
Although JLR calls this “standard practice,” the situation at the company is far from stable. The Jaguar brand is undergoing a deep transformation, and Land Rover is suffering from high tariffs. For example, the popular Defender, which is produced in Slovakia, is now subject to a 27.5% duty when imported into the USA.
Staff reductions are just one step in a series of measures aimed at stabilizing the company’s financial condition. However, without changes in external conditions, such as reduced tariffs or restored demand, JLR may continue to face difficulties. This is especially true for the American market, which has traditionally been key for the group’s brands.
