Aston Martin has confirmed it will cut 20% of its workforce after widening annual losses as the luxury car maker struggles with weak global demand and the impact of US trade tariffs.
The Gaydon-based manufacturer said net losses rose 52% to £493.2m last year, while operating losses reached £259.2m. The company employs around 3,000 people worldwide, meaning around 600 jobs are expected to be cut, with most of the cuts likely to impact its UK operations.
Aston Martin said the restructuring program would deliver annual savings of around £40 million, with most of those savings realized in 2026. No detailed timeline for the layoffs was given, but confirmed that roles across the company, including factory positions, would be affected.
The automaker blamed “extremely disruptive” US tariffs imposed under Donald Trump as well as subdued demand in China, the world’s largest auto market. The company has already warned that the tariffs have significantly hurt sales in the US, one of its key territories.
In a statement, Aston Martin said: “Having begun a process of implementing organizational adjustments in early 2025 to ensure the company was adequately resourced for its future plans, we had to make the difficult decision at the end of 2025 to implement further changes. This latest program will ultimately result in the departure of up to 20% of our valued workforce.”
The job cuts are part of a broader effort to stabilize the company’s finances after years of volatility. As well as cutting staff, Aston Martin has cut its five-year investment plan from £2bn to £1.7bn by delaying investment in electric vehicle development.
The move signals a change in strategy as the company prioritizes short-term liquidity preservation over accelerated electrification. This comes amid a general slowdown in demand for electric vehicles across the luxury segment and increasing pressure on automakers due to rising borrowing costs and trade uncertainty.
Aston Martin said it expects further cash outflows in 2026 but forecast a “significant improvement” in financial performance, helped by the launch of its Valhalla hybrid supercar. Around 500 deliveries of the £850,000 model are expected to contribute to improved margins.
The company is targeting gross margins in the high 30% range and adjusted earnings before interest and taxes close to breakeven.
In a further attempt to strengthen its balance sheet, Aston Martin last week agreed a £50 million deal to sell perpetual brand rights to its Formula One team.
Despite the cost-cutting measures and asset divestitures, the company remains under investor scrutiny for its long-term turnaround plan as it tries to return to profitability in a turbulent global market.
