Crippling Cyberattack on Jaguar Land Rover Threatens Thousands of Jobs in UK and Global Supply Chain

Global automotive giant Jaguar Land Rover (JLR) has been paralyzed for nearly three weeks due to a crippling cyberattack. Typically producing an estimated 1,000 vehicles daily across multiple UK factories, the company’s workforce has been ordered to stay home while JLR navigates this digital assault.

The ripple effects are evident in the hundreds of companies that supply JLR with parts and materials, potentially escalating the attack into a full-blown crisis. Last Friday, the UK government acknowledged the significant impact the cyberattack has had on JLR and the broader automotive supply chain. Warnings of potential job losses in JLR’s extensive supply network have been escalating, with some smaller companies facing possible bankruptcy.

Reports suggest that JLR could be losing up to £50 million ($67 million) per week during the shutdown. Some companies have already initiated layoffs, according to Unite Union, which claims that workers in JLR’s supply chain are being let go with reduced or no pay. Some have been directed towards government benefits, the union alleges.

“It appears unparalleled in the UK for such extensive disruption due to a cyberattack or ransomware attack,” remarks Jamie MacColl, Senior Research Fellow at RUSI’s cyber and tech research group. The possibility of thousands of jobs being temporarily or permanently affected is “on a different scale” compared to previous incidents, he adds.

JLR, a subsidiary of India’s Tata Motors, employs approximately 32,800 people directly in the UK. According to company statistics, its operations support another 104,000 jobs through the UK supply chain and an additional 62,900 jobs “through wage-induced spending.” Beyond the UK, numerous suppliers are based overseas, with some factories located abroad as well.

In early September, JLR confirmed it had been affected by a cyberattack, prompting immediate action and the shutdown of its systems, thereby halting production processes across its factories. As investigations into the attack continue, JLR disclosed on Wednesday that their production pause has been extended to September 24th.

“We have taken this decision as our forensic investigation of the cyber incident continues, and as we consider the various stages of the controlled restart of our global operations, which will take time,” JLR stated in a Wednesday release. “We sincerely apologize for the ongoing disruption caused and will continue to provide updates as the investigation progresses.”

JLR declined to comment on specifics regarding the disrupted systems, the financial toll of the cyberattack on suppliers, or any measures being taken to aid affected businesses.