Luxury automaker Aston Martin announced on Wednesday that it will be implementing a 5% reduction in its global workforce, equivalent to approximately 170 job cuts, as part of a broader strategy aimed at slashing costs and enhancing future investments. This decision follows a year that saw the company's losses widen by 21%, exacerbated by ongoing supply chain disruptions and declining car sales.
"I want Aston Martin to transition from a high-potential business to a high-performing one, better equipped to navigate future opportunities and uncertainties," said CEO Adrian Hallmark in a statement highlighting the company's shift in focus towards operational efficiency and financial sustainability. Recent industry challenges, coupled with a series of product launches, prompted this strategic pivot.
The Gaydon, UK-based company aims to save £25 million annually as a result of the job cuts, with the expectation that roughly half of that target will be achieved within the current fiscal year. The specifics of the job cuts—whether they will affect manufacturing positions or office-based roles—were not disclosed by the company in its announcement.
Since its acquisition by Canadian billionaire Lawrence Stroll in 2020, Aston Martin has endeavoured to revitalise its performance through the launch of new models, including the Vantage sports car and the DBX707 SUV. The company also introduced its flagship Vanquish model in September 2023. Despite a reported 10% increase in wholesale volumes during the second half of the year compared to the same period in 2023, overall sales for the year fell by 9%, totalling 6,030 vehicles. As a result, Aston Martin's adjusted pre-tax losses accumulated to £289 million, an increase from the previous year's losses of £239 million.
The situation has been compounded by a growing debt burden, which surged by 43% to £1.16 billion over the last year, alongside a significant decline in the company's share prices, which fell by approximately 33%. Earlier in the year, Aston Martin had cautioned investors that production might be reduced by about 1,000 cars due to supply chain issues and a notable downturn in demand from key markets, notably China, where consumer interest has recently flagged.
Moving forward, Aston Martin is prioritising the development of its mid-engined Plug-in Hybrid Electric Vehicle (PHEV) named 'Valhalla', with deliveries expected to commence in the latter half of 2025. The launch of its first battery electric vehicle (BEV), initially scheduled for 2026, has been postponed for the second time, highlighting the challenges the luxury carmaker faces amid an ever-changing automotive landscape.
Source: Noah Wire Services