With the fallout from the VW emissions scandal continuing to be felt, United Kingdom sales of diesel cars declined by 29.6 per cent in 2018.
A trade war between China and the United States combined with Britain's pending exit from the European Union has fragmented once global markets, forcing vehicle makers to reassess the profitability of individual models and locations.
Jaguar employs 44,000 workers in the United Kingdom at sites in Halewood on Merseyside and Solihull, Castle Bromwich and Wolverhampton in the West Midlands.
JLR, based in central England, will cut some 4,500 out of 42,500 jobs, targeting managerial roles rather than production-line workers as it battles to return to profitability.
The company said it will produce next-generation electric motors at its engine plant in Wolverhampton, and assemble batteries at Hams Hall, also in the U.K.'s West Midlands region.
The Tata Motors-owned company has unveiled plans to cut costs and improve cash flows by 2.5 billion pounds including "reducing employment costs and employment levels".
The firm reported a £90m pre-tax loss in the three months to 30 September, compared with a £385m profit in the same period in 2017. "Falling sales in China due to global trade wars as well as changing consumer attitudes to diesel vehicles have been damaging". The move comes after the company shed 1,500 jobs in 2018.
They come in addition to the 1,500 workers who left the company previous year.
Steven Armstrong, Ford's European group vice president, said the company was taking "decisive action" to transform its European business.
Britain's business minister Greg Clark said on Thursday it is clear why a no-deal Brexit would add to the problems with further costs and disruption. In September, Jaguar Land Rover boss Speth warned that the wrong Brexit deal could cost tens of thousands of vehicle jobs and risks production at the firm. The company said it would start a voluntary buyout program and implement a flatter management system as it increases investment in areas such as electrification.
Earlier this month it was reported United Kingdom new vehicle sales in 2018 fell at their fastest rate since the global financial crisis a decade ago, hit by the collapse in demand for diesel, as the industry body warned of the existential threat to the sector posed by Brexit.
Ford's Armstrong said pressure to build electric and hybrid cars had forced the auto maker to make choices about where to allocate its capital. Its new Slovakian factory has a capacity of 150,000.
Beyond the £2.5 billion now being sought, rumours abound that Jaguar could be reincarnated as an all-electric brand in the not-too-distant future, better positioning it to deliver on future customer demand and lessening the burden it now places on the far-healthier Land Rover.