Jaguar Land Rover Cyberattack Halts Production, Threatens 250,000 Jobs in Supply Chain
Solihull, UK – A cyberattack has crippled production at Jaguar Land Rover (JLR) factories in Solihull, Halewood, and Wolverhampton, with operations expected to remain suspended until Wednesday, September 17th. The attack forced JLR to shut down its IT systems, bringing highly automated production lines to a standstill and severely impacting sales processes, though some dealerships have implemented temporary workarounds.
The disruption is estimated to be costing JLR between £5-10 million (approximately $6.8 – $13.6 million USD) per day, with total damages potentially reaching £50-100 million (approximately $68 - $136 million USD). Despite this important financial hit, JLR’s pre-tax profit of £2.5 billion ($3.4 billion USD) reported last year suggests the crisis might potentially be contained within a few weeks.
Though, the impact extends far beyond JLR itself. The company’s extensive supply chain employs approximately 250,000 people, according to David Bailey, a professor of business economy at Birmingham Business School. “Jaguar Land Rover’s supply chain has a total of 250 thousand people,” he told the BBC.
Many small and medium-sized businesses rely exclusively on JLR contracts, and the interruption of cash flow is raising serious concerns about potential bankruptcies.Former Aston Martin CEO Andy Palmer highlighted the severity of the situation, stating, “I am not surprised by some companies sinking.” The risk of supplier insolvency directly threatens the livelihoods of those 250,000 workers.
The financial strain is already being felt. One unnamed supplier has reportedly dismissed 40 employees – representing 50% of its workforce – while others are furloughing staff, attempting to balance reduced hours later. A worker at a large supplier in the West Midlands region reported that they do not anticipate a return to normal operations until September 29th, with hundreds of employees currently at home.While temporary workers are being impacted first, permanent positions are also at risk.
Shaun Adams, manager of Flok coating company Qualplast, anticipates the crisis will last for weeks, even with other ongoing projects.
The unfolding situation has prompted government intervention. Trade unions and Members of Parliament are calling for a salary-supported short-time work allowance program to protect vulnerable suppliers. Unite Union General Secretary Sharon Graham stated that “thousands of workers are suddenly facing the risk of losing their jobs.” Minister of Labor and Trade Chris Bryant has confirmed the government is in daily contact with JLR administration and actively seeking a resolution.
