Jaguar Land Rover, a leading car manufacturer, has announced its intention to cut up to 500 managerial positions in the United Kingdom. The company disclosed that these roles will be eliminated through a voluntary redundancy initiative.
The reduction in workforce will impact approximately 1.5% of Jaguar Land Rover’s employees in the UK. This decision follows a recent report that revealed a 15.1% decline in retail sales for Jaguar Land Rover, a subsidiary of Tata, in the three months leading up to June.
The company faced challenges when it temporarily halted car exports to the United States in April due to tariffs imposed by President Donald Trump. Additionally, Jaguar Land Rover phased out older Jaguar models during this period.
A spokesperson for Jaguar Land Rover stated, “As part of our routine business operations, we regularly provide eligible employees with the opportunity to depart from JLR through targeted voluntary redundancy programs.”
In other news, new data released today indicates that the unemployment rate in the UK has reached its highest level in four years. The Office for National Statistics reported that the UK unemployment rate rose to 4.7% in the three months ending in May, up from 4.6% in the previous three-month period.
Economists had anticipated that the unemployment rate would remain at 4.6% for the month. Meanwhile, the growth in average earnings, excluding bonuses, slowed to 5% in the May period, marking its lowest level in nearly three years.
Liz McKeown, the ONS director of economic statistics, commented, “The labor market continues to show signs of weakening, with a decline in the number of employees on payroll. However, revised tax data indicates that the decline in recent months is not as severe as previously estimated.”
“Growth in pay has decreased in both nominal and real terms, although it remains relatively robust compared to historical norms. The number of job vacancies has been steadily decreasing for the past three years.”
The UK’s gross domestic product (GDP) contracted by 0.1% in May, following a 0.3% decline in April. Despite expectations for a slight growth of 0.1% in May, the economy may be on track for an overall contraction in the second quarter of the year.
This development poses a challenge to Rachel Reeves and her efforts to bolster economic growth. Reeves expressed disappointment in the figures but reiterated her commitment to enhancing economic prosperity. She emphasized, “My primary objective is to increase disposable income for individuals. Despite today’s discouraging statistics, I am resolute in jumpstarting economic growth and fulfilling that commitment.”
