LONDON, U.K.: Jaguar Land Rover will cut around 4,000 jobs globally over the next two years as part of a turnaround plan aimed at saving £1.7 billion (US$2.30 billion) and lowering its break-even point toward 300,000 vehicles.

The cuts, which amount to nearly 10 percent of the luxury carmaker's workforce, will be made through voluntary redundancies. JLR employs about 43,000 people globally, including 34,000 in Britain, but did not say where the jobs would be eliminated.

The company is owned by India's Tata Motors and operates 17 sites in England. "The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geopolitical uncertainty," JLR Chief Executive PB Balaji said in a statement.

The move follows plans approved last week by Volkswagen to cut another 50,000 jobs as the German automaker tackles tariffs, excess capacity and competition from Chinese rivals.

JLR is also recovering from a cyberattack in 2025 that led to a prolonged production shutdown and disrupted suppliers.

The company said it plans to launch five new products over the next 12 months and continue investing £15 billion to £18 billion over the next five years in electrification, digital technologies, advanced manufacturing and improvements to customer experience.

At the same time, JLR said it needs to reduce costs and simplify its structure to make the business more resilient. The voluntary redundancy program will mainly affect 26,000 employees in its salaried and management workforce.

The announcement came as UK Finance Minister John Healey delivered a speech a few miles from JLR's Coventry headquarters, seeking to set out a brighter vision for the country's economic future ahead of a budget expected in late October.

Business Minister Jonathan Reynolds spoke with Balaji on September 7 and is due to meet the company and trade unions later this week.

"We understand that this will be an uncertain and concerning time for affected workers, their families, and the wider communities, and we know that current market conditions are challenging for the automotive sector globally," Prime Minister Andy Burnham's spokesperson said.

Local mayor Richard Parker announced a £500,000 support package for employees who opt for voluntary redundancy.