British-Indian automaker Jaguar Land Rover has announced plans to cut 4,000 jobs amid stiff market competition from Chinese manufacturers, U.S. tariffs, and rising adoption of electric vehicles.

JLR chief executive officer PB Balaji confirmed the decision, saying the reduction will spread across its global workforce over the next two years, while assuring the company’s commitment to treating affected workers fairly.

“The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geopolitical 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,” Mr Balaji said.

Reports noted that the automaker expects to achieve most of the reductions through voluntary resignations, with workers having until October 4 to do so or face compulsory redundancy with less favourable compensation packages.

In recent years, JLR has reportedly been losing sales to Chinese automobile companies, which are growing rapidly, prompting the decision to cut jobs to save £1.7 billion over the next two years.