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Llanelli workers face pre-Christmas earnings hit after Jaguar Land Rover cyber attack

Hundreds of workers in Llanelli are facing a loss of income in the run-up to Christmas after a cyber attack on Jaguar Land Rover (JLR) disrupted supply chains and halted production across the UK.

Agency staff laid off as overtime dries up

The impact has been felt acutely at Marelli and Gestamp, two major automotive suppliers in Llanelli with a combined workforce of 360. Agency workers have already been laid off, while permanent staff have been told to stay home and “work back” hours — effectively cancelling overtime many rely on for festive spending.

Local Labour MS Lee Waters raised the issue in the Senedd this week, warning that the cyber attack had left Welsh workers “in limbo” and calling for urgent clarity on when UK Government support will reach affected sites.

Welsh Government in daily contact with suppliers

First Minister Eluned Morgan said Welsh Government teams were in daily contact with around 30 suppliers across Wales, and that support services including React and Working Wales were on standby to assist affected workers.

“The JLR cyber attack has hit Welsh suppliers and the people who work in those companies hard,” she said. “We welcome the £1.5bn UK loan guarantee, but Welsh workers need to know when the money will land.”

She confirmed that both Marelli and Gestamp were being actively monitored, and that Economy Secretary Rebecca Evans had written to UK ministers seeking urgent updates.

Tata under pressure over lack of cyber insurance

Mr Waters criticised JLR’s parent company Tata for failing to have cyber insurance in place, despite previous high-profile attacks on UK retailers. He urged the Welsh Government to press Tata directly for support for downstream suppliers in Wales.

Llanelli Labour councillor Shaun Greaney added:

“Why is it the poor workers who always pay the price for ineptitude at a higher level? They should be compensated by JLR’s owners Tata.”

JLR introduces supplier support scheme

In response, JLR said it had launched a short-term financing scheme to help suppliers with cashflow, including faster payments and reimbursement of financing costs. A dedicated help desk and manual payment system have also been introduced, with automated systems now being restored.

The company said the scheme would initially support critical suppliers needed to restart production, before expanding to include non-production partners.

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Two key Llanelli suppliers, Gestamp and Marelli, face disruption after JLR cyber attack halts production.

Nia Griffith: JLR rescue package ‘must’ protect Llanelli jobs after cyber‑attack

Production at JLR’s UK factories was suspended on 1 September after a major cyber incident disrupted its IT systems. The shutdown has left thousands of workers in the supply chain facing uncertainty, including staff at major component manufacturers Gestamp and Schaeffler, which both operate large facilities in Dafen, Llanelli.

Dame Nia said the Government’s intervention was welcome but stressed that the benefits must reach Carmarthenshire quickly.

“The situation was perilous and there was concern for jobs at a number of companies. The loan will bolster JLR’s cash reserves enabling it to pay back companies in its supply chain.
I urge JLR to ensure it gives the maximum support to the firms in my constituency who have been involved in supplying them for some years. Speed is of the essence to ensure local companies benefit from the rescue deal announced by the Government and to help their loyal workforce.”

She added that while the £1.5 billion loan guarantee would provide certainty, JLR must now act swiftly to roll out payments and restore its IT systems to allow deliveries and pick‑ups to resume.

Timeline: JLR cyber-attack and recovery

1 Sept: JLR suspends production after major cyber-attack disrupts IT systems.
2 Sept: Company confirms systems shut down; production and retail activities severely disrupted.
6 Sept: JLR apologises for disruption, says it is working with cybersecurity experts and law enforcement.
10 Sept: JLR admits some data has been affected; regulators informed.
16 Sept: Production pause extended until 24 September.
23 Sept: Shutdown extended again until 1 October.
25 Sept: Invoicing and parts logistics systems begin to come back online.
29 Sept: JLR announces some manufacturing operations will resume “in the coming days” as phased restart begins.
6 Oct (expected): Engine facility in Wolverhampton to be first to restart, with phased return at other plants.

Government support package

The loan guarantee, announced by Business Secretary Peter Kyle, is designed to unlock up to £1.5 billion in private finance for JLR. Backed by the Export Development Guarantee, the loan will be repaid over five years and is intended to give certainty to the company’s extensive supply chain.

Mr Kyle described the cyber‑attack as “not only an assault on an iconic British brand, but on our world‑leading automotive sector and the men and women whose livelihoods depend on it.”

Chancellor Rachel Reeves said JLR was “a jewel in the crown of our economy”, adding that the package would protect thousands of jobs and support the wider supply chain.

JLR recovery underway

JLR has issued a series of updates throughout September as it works to restore its systems and restart production. In its latest statement today (29 September), the company confirmed that some sections of its manufacturing operations will resume “in the coming days” as part of a phased restart.

The company said:

“As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world‑class vehicles. Today we are informing colleagues, retailers and suppliers that some sections of our manufacturing operations will resume in the coming days.”

JLR added that it was working “around the clock” with cybersecurity specialists, the UK Government’s National Cyber Security Centre and law enforcement to ensure the restart was carried out safely. It thanked staff, suppliers and customers for their patience, saying the “foundational work of our recovery is firmly underway” but acknowledged there was “much more to do”.

Local impact

The shutdown has highlighted the vulnerability of JLR’s vast supply chain, which employs around 100,000 people across the UK. For Llanelli, where Gestamp and Schaeffler are key employers, the disruption has been particularly concerning. Both firms supply components directly to JLR, meaning the pause in production has had an immediate knock‑on effect for their operations and workforce.

Dame Nia Griffith said the Government’s loan guarantee must now translate into real support for those local businesses:

“I very much welcome this support put in by the UK Labour Government, but now we need JLR both to implement it in a timely fashion in order to safeguard jobs in our local plants, and to get the replacement IT systems up and running to enable the necessary deliveries and pick‑ups.”

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