UK automakers Lotus and Jaguar Land Rover face job cuts amid US tariffs

British automotive manufacturers Lotus and Jaguar Land Rover are facing significant workforce reductions and operational challenges driven by international trade tensions and market shifts.

Lotus has reduced its UK workforce from 1,300 to 600 employees following the imposition of 25 per cent US automotive tariffs. Although a trade deal later reduced the rate to 10 per cent for the UK, a 100,000-unit export quota has continued to constrain the manufacturer's market potential. Lotus reported a 71 per cent drop in UK sales last year.

Jaguar Land Rover is also implementing job cuts amid a complex landscape of weakening demand in China, semiconductor shortages, and US import tariffs. The company has faced additional volatility, including a major cyberattack in August 2025 that halted production for five weeks. JLR's recent strategy has focused heavily on high-margin models like the Range Rover and Defender, which accounted for over 75 per cent of wholesale volumes by 2026, though this has impacted the development pace of its electric vehicle lineup.