Bentley will cut 275 jobs as the luxury car maker struggles with a sharp drop in profits and increasing pressure from a weakening global market, underscoring the growing strain even at the top end of the auto sector.
The Crewe-based manufacturer confirmed around 6 per cent of its 4,600 staff will be affected as part of what it described as “organizational efficiency measures”, with roles expected to include management, agency and non-manufacturing functions. The cuts will now undergo a consultation process, with the company stressing that it will support affected employees throughout.
The announcement came as Bentley reported a 42 per cent fall in operating profit to £187m, down from £322m last year and well below its peak of £509m in 2023. The downturn reflects a combination of weaker global demand, rising cost pressures and geopolitical uncertainty, all of which are increasingly shaping the outlook for premium car brands.
Vehicle sales also fell: Bentley delivered 10,131 cars last year, a decline of nearly 5 percent, largely due to a decline in key international markets, particularly China. The decline in Chinese demand has become a crucial challenge for luxury manufacturers, many of which have relied heavily on the region for growth over the past decade.
Chief executive Frank-Steffen Walliser acknowledged the scale of the challenge and said the company was forced to “make difficult decisions to ensure the long-term competitiveness of the company”. While he stressed that the cuts were not “panic measures”, he acknowledged that the operating environment remains volatile and there is the possibility of further adjustments if conditions worsen.
Bentley tried to put the profit decline in context by arguing that financial performance would have been broadly at 2024 levels without external pressures, including increased costs related to parent Volkswagen and the impact of U.S. tariffs. Still, the numbers show that even high-margin luxury brands are not immune to broader economic headwinds.
The restructuring comes at a crucial time for the company on its path to electrification. Bentley is nearing completion of a new assembly line at its Crewe headquarters that will support production of its first all-electric vehicle, scheduled for launch in early 2027. The investment marks a critical step in its long-term strategy, although the pace and direction of this transition is changing.
In a remarkable shift, the company has backed away from its previous goal of becoming an all-electric brand within this decade. Instead, the company is pursuing a “more balanced portfolio,” extending the lifespan of combustion and hybrid models in response to renewed customer demand and an overall slowdown in luxury electric vehicle adoption.
This recalibration reflects a broader trend in the premium automotive sector. Manufacturers such as Lamborghini have also delayed or revised their all-electric car strategies, reflecting both consumer reluctance and the practical challenges of deploying high-performance electric models at scale.
Beyond product strategy, Bentley is also operating in an increasingly politicized environment around vehicle size and emissions. Walliser defended the company’s larger models, such as the Bentayga SUV, after criticism from London Mayor Sir Sadiq Khan, who proposed imposing additional taxes on large vehicles, often referred to as “Chelsea tractors”, due to perceived safety risks.
Walliser rejected these claims and described the debate as politically motivated. He argued that all vehicles, regardless of size, must meet strict legal standards for pedestrian and cyclist safety.
Despite current pressures, Bentley remains committed to its long-term transformation and positions electrification, product innovation and operational efficiency as key pillars of its future strategy. But recent results and job cuts highlight a more immediate reality: Even the most prestigious automotive brands are being forced to quickly adapt to an increasingly uncertain global market.
