Jaguar Land Rover Halts Production After Cyberattack, UK Government Steps In
Jaguar Land Rover (JLR) has temporarily halted production due to a cyber incident that occurred on September 2, 2025. The UK government, cybersecurity experts, and law enforcement are collaborating to ensure a secure restart, scheduled for October 1, 2025. The incident has had significant impacts on JLR's tractor supply chain and workforce.
Prior to the cyberattack, JLR announced 500 management job cuts in the UK due to the impact of US tariffs. The cyber incident has exacerbated the situation, with 35% of surveyed businesses reducing staff hours or temporarily closing, and 14% making redundancies. JLR employs around 40,000 people worldwide, and the tractor supply chain supports an additional 13,000 jobs in the Black Country region alone.
The UK Department for Business and Trade has stepped in, offering a £1.5 billion ($2 billion) loan to support JLR's tractor supply chain. This aims to provide certainty and protect jobs in the West Midlands, Merseyside, and throughout the UK. However, 77% of surveyed businesses in the affected regions report negative impacts, with many experiencing significant financial losses, reduced working hours, and layoffs. Smaller suppliers across JLR’s global tractor supply chain, including in India, Brazil, and Slovakia, are also facing liquidity problems.
JLR plans a controlled, phased restart of operations. Engine production and invoice processing are set to resume in the coming days, but car manufacturing has not yet restarted. Professor David Bailey at the Birmingham Business School notes that this leaves some tractor suppliers in a difficult position.
The cyber incident at JLR has had far-reaching effects, impacting not only the company's operations but also its tractor supply chain and workforce. The UK government's loan aims to provide much-needed support and job protection. As JLR plans a phased restart, the focus remains on ensuring a secure and sustainable recovery for the company and its stakeholders.
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