General view of Land Rover cars outside the Jaguar Land Rover factory on April 7, 2025 in Halewood, England.

Richard Martin-roberts | Getty Images News | Getty Images

Britain's Jaguar Land Rover (JLR) has said it will cut 4,000 jobs — around 10% of its global workforce — as the luxury car manufacturer responds to intense competition from cheaper Chinese rivals, a cyberattack and U.S. President Donald Trump's tariffs.

The company, which is owned by India's automotive manufacturer Tata Motors, said it is targeting roughly £1.7 billion ($2.3 billion) of savings over the next two years, while reducing break-evens to 300,000 vehicles.

CEO PB Balaji said the manufacturer would also launch five new products over the next 12 months.

"The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geo-political uncertainty," Balaji said in a statement.

"As part of this transformation, we will reduce our global workforce by around 4,000 roles over the next two years. We recognise this will be difficult news for colleagues affected, and are committed to supporting everyone with care, fairness and respect," he added.

Shares of Tata Motors traded 0.3% higher on Monday. The Mumbai-listed stock is up more than 10% year-to-date.

JLR's cost-cutting drive is seen as a fresh test for Prime Minister Andy Burnham, following similar cost-saving announcements at British luxury car firms Aston Martin and Bentley in recent months.

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U.K. Business and Trade Minister Jonathan Reynolds, who ruled out a bailout for the company over the weekend, is expected to meet with JLR executives to discuss the redundancy measures early this week.

"We understand that this will be an uncertain and concerning time for affected workers, their families and wider communities," a government spokesperson told CNBC by email.

"We have taken significant action to back the UK automotive industry by lowering electricity bills for manufacturers, providing £4 billion of capital and R&D funding to manufacture zero emission vehicles and launching a £2 billion Electric Car Grant to encourage people to buy EVs," they added.

It's not just British car firms feeling the pressure. German auto giant Volkswagen announced late last week that it plans to slash a further 50,000 jobs as part of a historic transformation plan, amid tariff pressures and fierce competition from Chinese car brands.