Job losses, expected to be announced on Thursday, will mainly involved management, marketing and administrative roles but it is feared there could be some cuts in production too.
Jaguar Land Rover plans to make £2.5 billion of cost savings, the company has announced.
In October previous year the auto giant unveiled a £2.5 billion turnaround plan that included cost cutting after Brexit uncertainty and slowing demand in China left it nursing a hefty second-quarter loss.
Sales in China between July and September fell by 44 percent, the biggest slump of any market for the central England-based firm, turning the country from its biggest sales market to its smallest.
Owned by India's Tata Motors, JLR also said it will build electric drive units at its Wolverhampton engine plant and create a new battery assembly centre in Hams Hall, near Birmingham, as it develops a greener vehicle range.
Commenting on the development, Ralf Speth, Chief Executive Officer of Jaguar Land Rover, said: "We are taking decisive action to help deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry".
This means nearly one in eight United Kingdom workers will lose their jobs at the luxury carmaker, which employs 44,000 workers across the country, including around 1,800 people at its engine plant at the i54 in Wolverhampton.
In China, demand has been adversely impacted by consumer uncertainty following import duty changes and escalating trade tensions with the US.
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The cuts are in response to the challenges of declining sales in China, the dramatic reduction in the diesel market in the United Kingdom and overseas as well as the uncertainty brought about by Brexit.
Unite, the country's largest manufacturing union, said it would be pressing the vehicle maker to safeguard its members' jobs.
In July last year, the company said it needed more certainty around Brexit in order to continue investing in its United Kingdom operations and warned that a "no-deal" Brexit would cost the company more than £1.2bn in profit each year.
JLR builds a higher proportion of its cars in Britain than any other major or medium-sized carmaker and has spent millions preparing for Brexit, in case of tariffs or customs checks.
Ninety percent of its vehicles are diesel-powered, although it has been investing in new electric and hybrid vehicles.
Jaguar Land Rover announced it is cutting thousands of jobs.
Meanwhile, Jaguar has been increasing headcount elsewhere in the world.
Japanese firm Honda later announced six non-production days in April under contingency plans to mitigate the risk of disruption to production at its Swindon factory after the United Kingdom leaves the EU.
It is also moving production of the Land Rover Discovery to Slovakia with plans to hire up to 3,000 workers. In China it has increased its workforce by 4,000 since 2014.