Aston Martin slashes 20% of jobs in desperate bid to survive financial crisis
Aston Martin slashes 20% of jobs in desperate bid to survive financial crisis
Aston Martin slashes 20% of jobs in desperate bid to survive financial crisis
Aston Martin has announced plans to cut up to 20% of its workforce as part of a major cost-saving drive. The luxury carmaker, which employs around 3,000 people, is facing financial pressures from weak demand, regulatory hurdles, and tariffs. The move comes after the company reported an operating loss of £259.2 million in 2025.
The job cuts aim to deliver annual savings of about £40 million by 2026. Most of these reductions will take effect next year, helping the company move closer to its financial targets. Aston Martin is targeting gross margins in the high 30% range and adjusted earnings near breakeven by 2026.
Demand for its cars has slumped, particularly in China, the world's largest auto market. U.S. tariffs have also hit the business hard, adding to the company's financial strain. To ease pressure, Aston Martin has trimmed its five-year capital spending plan to £1.7 billion by delaying investments in electric vehicle technology.
The company's struggles contrast sharply with rivals like Rolls-Royce and Bentley. Over the past five years, Aston Martin's annual deliveries have hovered between 7,000 and 9,000 vehicles, while losses mounted—including a £450 million loss in 2023. Meanwhile, Rolls-Royce (owned by BMW) grew sales by 20% to over 6,000 units in 2024, achieving record profits. Bentley (VW-owned) maintained sales of 13,000–15,000 cars annually, supported by strong SUV demand and financial stability.
Aston Martin has also secured a £50 million deal by selling the perpetual branding rights to its Formula One team. Despite expecting further cash outflows in 2026, the company predicts a 'material improvement' in its financial performance.
The workforce reductions and spending cuts are designed to stabilise Aston Martin's finances. The company remains under pressure from weak sales, tariffs, and competition but is pushing ahead with plans to reach profitability by 2026. Further financial updates are expected as the restructuring takes shape.
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