Cyberattack Halts Jaguar Land Rover, Threatens Thousands Of Jobs

For nearly three weeks, Jaguar Land Rover (JLR) has been paralyzed by a cyberattack that has halted production across its UK factories.

The automaker, owned by India’s Tata Motors, usually produces around 1,000 vehicles a day, but the shutdown is now costing the company an estimated £50 million ($67 million) per week, as first reported by WIRED.

On Friday, the UK government admitted the hack is having a “significant impact” on JLR and the “wider automotive supply chain”.

The Unite union predicts thousands of job losses because suppliers now perform employee dismissals. Workers have been told to take reduced or zero pay, and some were advised to “sign up” for government benefits.

“It seems unprecedented in the UK to have that level of disruption because of a cyberattack or ransomware attack,” said Jamie MacColl, a cyber and tech researcher at RUSI, as reported by WIRED. The potential job losses represent “a different order of magnitude” compared to past incidents, he added.

The attack has been claimed by a Telegram group calling itself Scattered Lapsus$ Hunters, a loose network linked to previous high-profile hacks. JLR confirmed that “some data” was affected but has not revealed details, says WIRED.

The company extended its production “pause” until September 24, saying it needs time for a “controlled restart” of operations. “We are very sorry for the continued disruption,” JLR said, as reported by WIRED.

A sunroof manufacturer has already cut jobs, while French automotive firm OPmobility is reconfiguring its production. WIRED reports that experts warn the highly interconnected supply chain makes recovery difficult.

The “just-in-time” production system of the industry has caused major negative effects on suppliers who operate at all levels of the chain.

The sunroof manufacturer has already applied job cuts while OPmobility in France reconfigures production. Experts warn that being the supply chain highly connected, recovery may be very difficult.

“This cyberattack is not some mere flicker on a screen, it is fast becoming a cyber-shockwave ripping through our industrial heartlands,” warned MP Liam Byrne, as reported by WIRED.

The UK auto industry faces permanent damage according to officials who now explore furlough schemes as a potential solution to the crisis.