Article Details
Scrape Timestamp (UTC): 2025-09-15 10:14:50.619
Source: https://www.theregister.com/2025/09/15/covidstyle_furlough_schemes_for_jlr/
Original Article Text
Click to Toggle View
Jaguar Land Rover supply chain workers must get Covid-style support, says union. As post-cyberattack layoffs begin, labor org argues UK goverment should step in. The UK's chief automotive workers' union is calling on the government to establish a Covid-esque furlough scheme for the thousands of individuals who face losing their jobs due to the cyber-related downtime at Jaguar Land Rover. Unite said it's already received reports that layoffs have begun for some workers across JLR's supply chain. Those employed directly by JLR are thought to be less at risk of redundancy than those across the automaker's extensive list of external suppliers. "The government needs to defend jobs when our industries are under attack," said Sharon Graham, general secretary at Unite. "Many UK workers in small and medium automotive manufacturers are already facing insecurity because of the low volume crisis in the sector. Thousands of these workers in the JLR supply chain now find their jobs are under an immediate threat because of the cyberattack." Furlough schemes were common during the earlier months of the Covid-19 pandemic, allowing companies to retain staff while the government covered up to 80 percent of their salaries, with a £2,500 ($3,395) monthly cap. Many companies enrolled in the scheme. Some used the government support to keep staff on full pay while they were not working "on furlough," although plenty of others kept staff on a lower wage. A government review of the furlough scheme concluded that it saved around 4 million jobs, and around 250,000 organizations would have gone bankrupt without the additional support. It is understood that Jaguar Land Rover indirectly supports at least 100,000 jobs – likely more – across its various suppliers. TCS-owned JLR said it halted assembly lines across its factories globally on September 2. With the attack cleanup soon to enter week three of downtime, the costs associated with the disruption are mounting for all parties involved. The costs for any organization experiencing extended periods of downtime are high, but for a business that produces around 1,000 cars per day, across sites in the UK, China, India, and Slovakia, the impact is devastating. According to economists speaking to the BBC, JLR is likely shouldering costs between £5 million and £10 million (c $6-13 million) for every day it remains on lockdown, meaning the potential losses – so far – are in the £65 million to £130 million ($88-176 million) region. The last official update from JLR came on September 10, revealing that "some data has been affected" in the attack. "Since we became aware of the cyber incident, we have been working around the clock, alongside third‑party cybersecurity specialists, to restart our global applications in a controlled and safe manner." It added: "We are very sorry for the continued disruption this incident is causing and we will continue to update as the investigation progresses."
Daily Brief Summary
Jaguar Land Rover's supply chain faces significant layoffs following a cyberattack, prompting calls for government intervention to protect affected workers.
The UK's automotive union urges a Covid-style furlough scheme to safeguard jobs within JLR's extensive supplier network, which supports over 100,000 positions.
Direct JLR employees are less vulnerable to layoffs compared to those at external suppliers, who are experiencing heightened job insecurity.
The cyberattack has halted JLR's global assembly lines since September 2, with daily losses estimated between £5 million and £10 million.
The financial impact of the ongoing downtime could reach £130 million, severely affecting JLR's operations across the UK, China, India, and Slovakia.
JLR is collaborating with cybersecurity experts to restore its systems safely, acknowledging data compromise and ongoing disruptions.
The situation highlights the critical need for robust cybersecurity measures and contingency plans to mitigate operational and economic risks.