Aston Martin announced on Wednesday that it will cut approximately 5% of its global workforce as part of a broader effort to streamline operations and reduce costs in an announcement that caused its share price to fall by about 9%.
The job reductions are expected to generate annual savings of about £25 million ($31.6 million) as the company works to stabilize its finances following a turbulent period.
The decision comes as the luxury automaker faces increasing financial strain amid a challenging macroeconomic environment.
Supply chain disruptions and weakening demand in key markets, including China, have affected sales, while rising material costs have pressured margins.
“After a period of intense product launches, coupled with industry-wide and company challenges, our focus now shifts to operational execution and delivering financial sustainability,” CEO Adrian Hallmark said in a statement.
The restructuring move follows similar cost-cutting efforts by other European car manufacturers, such as Volkswagen and Stellantis, which have also warned of a deteriorating outlook for the industry.
Automakers are struggling to balance the transition to electrification while managing weaker-than-expected demand for electric vehicles (EVs) and increasing geopolitical risks, including trade tensions between the European Union and China.
EV launch pushed further back
In addition to the job cuts, Aston Martin announced it is delaying the launch of its first battery electric vehicle (BEV) for the second time.
Initially scheduled for 2025, the company had previously pushed the launch to 2026, but it now says the first all-electric model will not arrive until the “latter part of this decade.”
Instead of focusing on fully electric cars, Aston Martin said it will prioritize hybrid technology, particularly its mid-engine plug-in hybrid supercar, the Valhalla.
The company plans to begin deliveries of the Valhalla in the second half of 2025, banking on the model’s success to help improve its financial performance.
Aston Martin’s delay mirrors a broader slowdown in EV adoption, as automakers adjust expectations in response to shifting consumer demand.
While EV sales have grown in most major markets, manufacturers had initially anticipated faster growth.
Many luxury automakers are now reassessing their electrification strategies, favoring hybrids in the near term to maintain profitability.
Financial struggles continue
Aston Martin reported a pre-tax loss of £289.1 million for the year ended December 31, a significant increase from the £239.8 million loss recorded in 2023.
Revenue declined by 3% to £1.58 billion, driven by a 9% drop in wholesale volumes to 6,030 units.
The company cited ongoing supply chain disruptions, a weaker macroeconomic climate, and foreign exchange headwinds as key factors behind the decline.
Despite these financial setbacks, Aston Martin remains optimistic about its long-term goals.
The company’s year-end liquidity stood at £514 million, supported by financing activities, though its net debt rose sharply to £1.16 billion from £814 million the previous year.
Looking ahead, Aston Martin aims to achieve positive adjusted earnings before interest and taxes (EBIT) in the second half of 2025.
The company also reiterated its mid-term financial targets, including revenue growth to £2.5 billion by 2027-28.
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