Aston Martin will cut up to 20% of its workforce in a bid to save about £40m. The move could affect around 500 employees.
The luxury carmaker confirmed the plan after reporting pre-tax losses of £363.9m for 2025. Losses were £289.1m the previous year. The company had already cut 170 jobs at the start of 2025.
The group said it had reviewed its structure and decided further reductions were necessary. It described the decision as difficult but essential for future plans.
Chief executive Adrian Hallmark said job cuts alone would not solve the company’s problems. He called the programme an important step toward making the business leaner and more efficient.
Aston Martin blamed weaker trading on higher US tariffs and soft demand. It also pointed to extremely subdued sales in China, a key market affected by economic slowdown and tariff changes.
Investors had expected poor results after the company issued its fifth profit warning since September 2024. It also sold the permanent naming rights to its Formula One team to raise cash.
The carmaker has struggled since its 2019 stock market listing. It has faced repeated losses, production issues and excess dealer inventory. Its shares have lost most of their value.
Analysts said external pressures tell only part of the story. They warned that long-term recovery depends on higher sales volumes and better efficiency. Deep job cuts could make a rapid increase in production more difficult.
Aston Martin shares fell 2% on Wednesday following the announcement.
