Aston Martin Announces Major Layoffs to Save £40 Million
Aston Martin Announces Major Layoffs to Save £40 Million
Jakarta, CNBC Indonesia - British luxury car manufacturer Aston Martin has announced plans to lay off 20% of its workforce. This efficiency measure is being taken to save costs of approximately £40 million after the company reported increased losses in the 2025 fiscal year.
The group, which is majority-owned by Canadian billionaire Lawrence Stroll, stated that it will cut around 500 employees. This decision follows a similar move earlier this year, which resulted in the layoff of 170 workers as part of the company’s operational adjustments.
Aston Martin’s management revealed that after conducting an organizational adjustment process in early 2025 to ensure that business resources align with future plans, they had to make a difficult decision at the end of 2025 to implement further changes.
“This latest program will ultimately impact up to 20% of our valuable workforce,” the official statement from Aston Martin’s management read, as quoted by the Guardian.
The details of these job cuts were released alongside a report of pre-tax losses that increased to £363.9 million in 2025. This figure is higher than the £289.1 million loss in the previous year.
The company’s performance has been pressured by trade barriers due to increased tariffs from the United States, as well as weakening market demand. This situation had been anticipated by investors after the company issued its fifth profit warning since September 2024 and sold the permanent naming rights to its Formula One team for £50 million.
Aston Martin’s Chief Executive Officer, Adrian Hallmark, stated on Wednesday that cutting the number of employees will not immediately solve all of the company’s restructuring needs, but this step is an important part of the company’s overall strategy.
“The process of reducing the number of employees is already underway, which is important to make us leaner and more effective in the future,” said Adrian Hallmark.
The iconic car manufacturer currently has its headquarters in Gaydon, Warwickshire, as well as manufacturing facilities in St Athan, South Wales. Historically, the company’s share value has fallen sharply since it was listed on the stock exchange in 2019, accompanied by a dealer inventory crisis and ongoing production challenges.
The company explained that the trade tariffs imposed by Donald Trump have exacerbated these problems, making 2025 one of the most turbulent years in recent times. The company was forced to navigate an unpredictable policy landscape and supply chain challenges that have impacted volume, efficiency, and margins.
“This year has made one reality impossible to ignore: even the most resilient luxury brands are not immune to geopolitical friction, and the barriers created by these trade obstacles have reshaped the competitive environment in a way that requires us to adapt and make difficult decisions,” added the company’s management.