British luxury car maker Aston Martin will cut its workforce by up to 20 per cent, it said on Wednesday, as it strives to recover from the impact of US import tariffs and weak demand in China.
Aston Martin said the job cuts from a total workforce of around 3,000 should deliver annualised savings of around £40m ($54m). It did not specify when the job cuts would be implemented, but said most of the savings would be this year. The cuts include a 5 per cent reduction announced last year.
Read more-Aston Martin to sell F1 branding rights as it warns of bigger loss
It also trimmed its five-year capital spending plan to £1
7bn from £2bn pounds by delaying investment in electric vehicle technology.
In early trade, Aston Martin shares rose by nearly 5 per cent after declines for nine successive sessions.
Lack of cash and high levels of debt
Best known as the car brand driven by James Bond, the company has struggled to generate cash and manage its debt of £1.38bn, although it has received injections of capital from Canadian billionaire and chairman Lawrence Stroll and through deals.
It said US tariffs had been “extremely disruptive” and demand had also been “extremely subdued” in China, the world’s biggest auto market.
Aston Martin said it expected further cash outflows in 2026, but also predicted “material improvement” in its financial performance.
It has a target for gross margins in the high 30 per cent range and adjusted earnings before interest and taxes near breakeven, helped by around 500 deliveries of its new Valhalla hybrid supercar.
The company made an operating loss of £259.2m in 2025.
As part of its efforts to improve its finances, it struck a £50m deal to sell the perpetual branding rights to its Formula One team last week.