Jaguar Land Rover (JLR) has confirmed plans to cut 4,000 jobs.
The company blamed "significant challenges" within the auto industry and said it was "moving decisively" to strengthen its competitiveness.
The UK's largest car manufacturer signalled that the bulk of the job losses would be in the UK and come from non-production staff.
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JLR revealed a voluntary redundancy programme on Saturday but declined to give more details until workers had been informed.
Its chief executive, PB Balaji, said in an updated statement on Monday: "The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geo-political uncertainty."
He added: "We are reducing organisational complexity and targeting £1.7bn of savings to lower our break-even point towards 300,000 vehicles and become fitter to compete in a rapidly evolving market.
"These actions will support continued investment of £15bn-18bn over the next five years in electrification, digital technologies, advanced manufacturing and enhanced customer experiences.
"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."
The company, which has 34,000 workers in the UK, has suffered a string of shocks since the COVID pandemic.
These include surging energy costs, US trade tariffs and the impact of a cyber attack a year ago that shut down production for five weeks.
Like rivals, JLR has watered down its zero-emission vehicle production targets to compensate for weak electric demand, partly a consequence of cheap competition from China.
Its most recent results showed a near-10% decline in revenue over the April-June quarter compared to the same period in 2025.
Sales have also been hit by the Jaguar brand's decision, at the end of last year, to halt the manufacture of all legacy diesel and petrol-powered cars in favour of electric-focused development.
That decision followed a controversial rebrand, including a new logo, for the Jaguar marque.
JLR said on Monday it would launch five new products over the next 12 months and "continue to leverage the strength of our brands and renew our focus on North America, amongst other markets, to help us deliver double digit revenue growth."
Its fortunes are important for the UK economy.
The effects from the cyber shutdown last year were cited by the Office for National Statistics as a major drag on growth.
It's because the company's biggest UK operations - at Solihull, Wolverhampton, Coventry and Halewood - support many tens of thousands of jobs in the supply chain.
Liam Byrne, chairman of the Business and Trade Committee of MPs, said the job cuts were a "body blow for workers, families and communities across the West Midlands".
He said: "Whether or not these redundancies are voluntary, we now need urgent assurances that maximum support will be deployed to help everyone affected find new work."
A Downing Street spokesperson said the announcement meant an "uncertain and concerning time" for workers and showed the impact of "challenging" global market conditions for the automotive industry.
(c) Sky News 2026: Jaguar Land Rover to cut 4,000 jobs

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