British luxury automaker Aston Martin announced it will cut its global workforce by up to 20%, affecting nearly 600 employees out of its roughly 3,000-person staff.
The decision follows a disastrous 2025 financial year, during which the company’s operating losses surged by 161% to reach £259.2 million.
The “Perfect Storm” of Challenges
Aston Martin CEO Adrian Hallmark characterized the current environment as “unprecedentedly challenging,” citing several external and internal pressures:
- Disruptive U.S. Tariffs: The company described President Trump’s quota-based tariff system as “extremely disruptive.” The U.S. is Aston Martin’s largest market, and the uncertainty around trade agreements has hammered sales and margins.
- China Slowdown: Demand in China, the world’s largest luxury car market, has been “extremely subdued,” with deliveries in the APAC region slumping by over 20% in 2025.
- Debt and Cash Strain: Despite multiple capital injections from Chairman Lawrence Stroll, the company is struggling to manage a £1.38 billion debt pile.
Strategic Cost-Cutting Measures
The 20% workforce reduction is the centerpiece of a broader plan to save £40 million ($54 million) annually.
| Measure | Detail |
| Workforce Reduction | Up to 600 jobs (includes a 5% cut announced in 2025). |
| Capex Reduction | Trimmed 5-year spending from £2 billion to £1.7 billion. |
| EV Delay | Savings will be achieved by delaying investments in electric vehicle technology. |
| Asset Monetization | Sold perpetual branding rights to its F1 team for £50 million last week to boost liquidity. |
Impact on Operations
- Location: The majority of the cuts are expected to hit UK-based operations, including the headquarters in Gaydon, Warwickshire, and the manufacturing plant in St Athan, Wales.
- Timeline: While a specific date wasn’t set for all departures, some staff are expected to leave by April 2026 following a consultation period.
- Production Targets: To recover margins, the company is pivoting toward its high-end “Specials.” It plans to deliver around 500 units of the Valhalla hybrid supercar in 2026 to boost its average selling price.
Market Reaction
Despite the grim news of layoffs, Aston Martin’s stock rose nearly 5% in London trading on Wednesday. Investors appeared to welcome the aggressive cost-discipline measures after the stock had suffered nine consecutive days of declines.
