Cyberattack on Jaguar Land Rover Causes Alarming Disruption and Potential Job Losses in UK’s Automotive Supply Chain

Global automotive giant Jaguar Land Rover (JLR) has been grappling with a crippling cyberattack for nearly three weeks, causing its production lines to halt and leaving an estimated 1,000 vehicles per day unproduced. The ripple effects of this shutdown are being felt across the hundreds of companies that supply JLR with parts and materials, potentially escalating the attack into a full-blown crisis for the industry.

On Friday, the UK government acknowledged the significant impact the cyberattack on JLR was having not only on the company but also on the broader automotive supply chain. As concerns mount over potential job losses in JLR’s extensive supply network and the possible bankruptcy of some smaller companies, reports suggest that JLR could be losing approximately £50 million ($67 million) per week during the shutdown. Some firms have already initiated layoffs, with Unite union reporting that affected workers are being dismissed with reduced or no pay and directed to apply for government benefits.

Jamie MacColl, a senior research fellow in the cyber and technology research group at RUSI, notes that the disruption caused by this attack is unparalleled in the UK due to its potential long-term effects on employment. The possibility of thousands of jobs being temporarily or permanently affected represents a new level of severity compared to past incidents.

JLR, a subsidiary of India’s Tata Motors, employs around 32,800 people directly in the UK. According to company stats, JLR supports another 104,000 jobs through its UK supply chain and an additional 62,900 jobs “through wage-induced spending.” Many of these suppliers are based outside the UK, with some overseas factories also involved.

At the beginning of September, JLR confirmed it had fallen victim to a cyberattack and took immediate action by shutting down its systems, effectively halting factory production. Though investigations into the attack are ongoing, JLR has yet to specify which data was affected. On Wednesday, the company announced that its production pause has been extended until September 24 as it continues its forensic investigation and plans a controlled restart of global operations.

JLR declined to comment on the specific systems disrupted by the attack, the financial toll on suppliers, or any measures being taken to support affected businesses.