Aston Martin, the British luxury car manufacturer, is planning to reduce its workforce by up to 20% in an effort to cut costs and boost profitability. The company's decision comes as a result of the impact of American tariffs and a decline in demand from Asia. According to reports, Aston Martin aims to reduce annual expenses by £40 million (approximately $54 million) through the job cuts. The move is part of a broader effort to address the company's financial struggles, which were exacerbated by a 52% increase in net losses to £493.2 million (approximately $666 million) in 2025. The company blames the losses on President Donald Trump's tariffs, which it describes as "extremely disruptive." Additionally, demand from China has been "extremely subdued," further contributing to the decline in profits. With a workforce of approximately 3,000 employees, a 20% reduction in force would result in around 600 job cuts. However, the ...
Aston Martin, the British luxury car manufacturer, is planning to reduce its workforce by up to 20% in an effort to cut costs and boost profitability. The company’s decision comes as a result of the impact of American tariffs and a decline in demand from Asia. According to reports, Aston Martin aims to reduce annual expenses by £40 million (approximately $54 million) through the job cuts. The move is part of a broader effort to address the company’s financial struggles, which were exacerbated by a 52% increase in net losses to £493.2 million (approximately $666 million) in 2025.
The company blames the losses on President Donald Trump’s tariffs, which it describes as “extremely disruptive.” Additionally, demand from China has been “extremely subdued,” further contributing to the decline in profits. With a workforce of approximately 3,000 employees, a 20% reduction in force would result in around 600 job cuts. However, the company has not yet announced a specific timeline for the cuts.
Aston Martin has also delayed investments in electric vehicle technology, reducing its five-year capital spending plan from £2 billion (approximately $2.7 billion) to £1.7 billion (approximately $2.3 billion). Despite this, the company is optimistic about its prospects for 2026, with expectations of a “material improvement” in its financial performance. The sale of the $1 million-plus Valhalla hypercar has helped to prop up the company, with roughly 500 deliveries made so far. Aston Martin aims to achieve gross margins in the high 30% range for 2026 and expects its adjusted earnings before interest and taxes to be near breakeven, having previously reported an operating loss of £259.2 million (approximately $350 million) in 2025.
The company’s efforts to reduce costs and improve profitability are part of a broader strategy to restore its competitiveness in the luxury car market. With the rise of electric vehicles and changing consumer preferences, Aston Martin must adapt to remain relevant and successful in the industry.
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