Why Jaguar Land Rover has decided change is needed
Jaguar Land Rover (JLR) is cutting 4,000 jobs as part of a major restructuring effort following declining sales and a significant cyber-attack. The company is struggling to compete with domestic Chinese electric vehicle manufacturers in a shifting global market.
Why it matters
The decline of traditional European luxury carmakers in China reflects a broader shift in the global automotive industry toward electric vehicles and local competition.
Image source, Getty Images By Theo Leggett Business Correspondent Published 27 minutes ago Jaguar Land Rover's decision to shed 4,000 jobs comes after the carmaker has travelled down a very rough road.
The company has seen sales fall in all of its major markets and it has been dealing with the consequences of a devastating cyber-attack that paralysed production last year.
At the same time, it has been investing billions in an effort to reinvent itself for an electric future, in which it is likely to face intense competition from aggressively expanding Chinese brands.
Executives have now decided a major overhaul is needed.
One of the main concerns for JLR is China. Not so long ago, it was seen as a land of opportunity for western carmakers, where the rapidly expanding middle classes seemed to have an inexhaustible appetite for upmarket foreign-badged vehicles.
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