The company announced on Monday that it wanted to achieve carbon neutrality by 2039. A transformation that would reduce its non-production activities.
British automaker Jaguar Land Rover (JLR) will cut nearly 2,000 jobs worldwide in 2022, it said in a statement on Wednesday (February 17th).
Two days after the announcement of a strategy to achieve carbon neutrality by 2039 and the switch from the 100% electric Jaguar brand from 2025, the group – owned by the Indian Tata – has invoked the need to reduce costs in order to transform towards a “more agile organization”. Factory workers would not be affected, he said.
On Monday, JLR, headed by Thierry Bolloré, had indicated that its transformation would lead to a reduction in its non-production activities in the United Kingdom, without specifying to what extent.
Return to double-digit operating margin
The manufacturer had said he did not want to close a factory, explaining that the one in Solihull (central England), where Land Rovers are also manufactured, would house Jaguar’s 100% electric platform. When asked about the Castle Bromwich site – located in the same region of the Midlands – where some Jaguar models are produced, Mr Bolloré said he had “lots of ideas” for this production unit.
Jaguar Land Rover has pledged to invest 2.5 billion pounds (2.8 billion euros) per year, largely in electrics. The manufacturer wants to work on the development of hydrogen to meet future demand and also intends to work with Tata on clean energy and computer software.
The goal for Jaguar Land Rover is to become a carbon neutral group for its supply chain, its products and its operations by 2039. On the financial side, the manufacturer’s objective is to be able to regain a double-digit operating margin and positive net cash flow by 2025.