LONDON (AP) — Jaguar Land Rover said Monday it will cut 4,000 jobs across its global workforce as it tries to cut costs and compete with Chinese electric carmakers.

Britain’s biggest automaker said the job cuts will take place over the next two years as it targets 1.7 billion pounds ($2.3 billion) in savings to make it more competitive as the industry transitions to electrification.

“The automotive industry faces significant challenges, with technological change amidst intense competition and ongoing geopolitical uncertainty,” chief executive PB Balaji said in a statement.

The job cuts and savings will help the company invest 15 to 18 billion pounds ($20-24 billion) over the next five years in electrification, digital technologies and other areas, he added.

Jaguar Land Rover, which makes the Range Rover, Discovery and other luxury SUVs, has reported slumping profits and sales in the face of intense competition from cheaper Chinese EVs, soaring costs and the impact of U.S. President Donald Trump’s tariffs.

The tariff policy introduced a 10% import tax for British-made cars, with the tax rising to 27.5% after the first 100,000 vehicles produced in a year.

The company’s sales were also hit last year when a cyberattack forced it to halt production for a month.

The company, owned by India’s Tata Motors, makes most of its cars in factories across the U.K. It employs around 34,000 people in the country and the majority of the job cuts are expected to affect its U.K. operations.

Monday’s news came as Treasury chief John Healey pledged to grow Britain’s sluggish economy and help businesses navigate rising costs.

Prime Minister Andy Burnham’s office said Monday that while market conditions are challenging for the automotive sector globally, Britain’s government will not consider a bailout for Jaguar Land Rover.

Last week, Volkswagen announced a sweeping cost-cutting plan that would cut 50,000 jobs, slim the company’s model line by half and end auto production at four German plants to counter competition in China and the effects of U.S. tariffs.

The Associated Press