Jaguar Land Rover has announced plans to cut around 4,000 jobs over the next two years.
Britain’s biggest carmaker formally announced the cuts on Monday, as it looks to save £1.7billion in costs.
The job losses will be spread over two years and staff were warned to expect the announcement late on Friday.
It comes after the company was denied a bailout by the Government to prevent the mass redundancies.
Jaguar Land Rover directly employs 34,000 people in the UK.
It has three sites in the West Midlands and one in Halewood, Merseyside.
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In a statement, Jaguar Land Rover said it will “reduce our global workforce” by around 4,000 roles in the next two years due to “significant challenges” facing the automotive industry and a need to find £1.7 billion in savings.
Chief executive PB Balaji said: “The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geo-political uncertainty.
“Through our Growth Reimagined strategy, JLR is moving decisively to strengthen our competitiveness and position the business for long-term success.
“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.”
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The carmaker’s revenue fell by nearly 10% in the most recent quarter, while its pre-tax profits plunged by more than two-thirds to £109million.
It has been coming under pressure from its Indian owner Tata Motors to reduce costs following a decrease in sales.
Jaguar Land Rover boss PB Balaji was brought in last year from Tata Motors to get a grip of the company’s finances.
However the firm has also taken a hit from the US president’s choice to impose a 10% tariff on UK car imports.
North America represents 29% of Jaguar Land Rover’s sales and is its biggest market.
The company was also hit by a cyberattack last year that ground its global operations to a halt for months.
The carmaker already revealed plans in July to axe around 300 UK job roles.
It said it was part of a corporate “restructure” and that salaried and managerial positions would be affected by the move.
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A Government spokesperson said: “We understand that this will be an uncertain and concerning time for affected workers, their families and wider communities.
“We have taken significant action to back the UK automotive industry by lowering electricity bills for manufacturers, providing £4billion of capital and R&D funding to manufacture zero emission vehicles and launching a £2billion Electric Car Grant to encourage people to buy EVs.”