Jaguar Land Rover hires BCG to advise UK cost-cutting plan

British luxury carmaker Jaguar Land Rover is reportedly planning to shed as many as 5,000 staff from its UK operations, as the firm looks to realise a £2.5 billion cost reduction effort. As the company looks to fortify its finances ahead of Brexit, the company has hired Boston Consulting Group to advise on this turnaround plan.

The automotive industry is in the midst of a global gear shift, as various mega-trends make themselves felt. Automation, electrification, connectivity and mobility, are each set to transform how consumers and corporations alike utilise vehicles, resulting in a more integrated, sustainable and safe operating environment. On top of this, challenges like Brexit, and a looming economic downturn for some of the world’s strongest economies, means many automotive manufacturers are scrambling to find savings.

In line with this, British luxury carmaker Jaguar Land Rover (JML) – which is owned by India’s Tata Motors Limited (TML) – has created a turnaround plan worth £2.5 billion in saving costs over next two years. According to a report by the BBC, JLR has hired Boston Consulting Group (BCG) to advise on the controversial plan.

According to the report, JML’s management will find the dramatic £2.5 billion in savings by slashing investments by £500 million each to £4 billion, £500 billion worth of rationalisation and working capital reduction and £1 billion of profit and cost actions. This is slated by the press as being likely to see as many as 5,000 jobs lost in the UK, during a potentially volatile economic period for the country, amid the realisation of Brexit, though as of yet that figure is unconfirmed.

Earlier, in October 2018, JML observed a two-week shutdown in Solihull while it trimmed its working week to three days per week for the Castle Bromwich plant. Further, the production of its Discovery model was moved from Solihull to Slovakia to cut costs.