Aston Martin to cut 20% of workforce as annual losses widen

Aston Martin has confirmed it will cut 20% of its workforce after annual losses widened, as the luxury carmaker battles weak global demand and the impact of US trade tariffs.

The Gaydon-based manufacturer said net losses jumped 52% on the previous year to £493.2m, while operating losses reached £259.2m. The company employs around 3,000 people globally, meaning around 600 roles are expected to go, with most of the cuts understood to affect UK operations.

Aston Martin said the restructuring plan would generate annual savings of around £40m, with most of those savings realized by 2026. It did not provide a detailed timetable for the layoffs but confirmed that roles across the business, including factory positions, would be affected.

The carmaker blamed “very disruptive” tariffs in the US introduced under Donald Trump, as well as weak demand in China, the world’s largest car market. The company has already warned that the price hikes have significantly affected sales in the US, one of its key areas.

In a statement, Aston Martin said: “At the beginning of 2025 the process of making organizational changes to ensure that the business has the right resources for its future plans, we had to take a difficult decision at the end of 2025 to make further changes.

The job cuts are part of a broader effort to stabilize the company’s finances after years of volatility. Alongside the job cuts, Aston Martin revised its five-year capital expenditure plan to £1.7bn, down from £2bn, delaying investment in electric car development.

The move marks a shift in strategy as the company prioritizes short-term savings over speeding up electrification. It comes amid a broader decline in EV demand in the luxury segment and mounting pressure on automakers from rising borrowing costs and trade uncertainty.

Aston Martin said it expects more cash flow in 2026 but predicted a “material improvement” in financial performance, supported by the launch of the Valhalla hybrid supercar. Around 500 deliveries of the £850,000 model are expected to contribute to the improved revenue.

The company is looking at gross margins in the upper 30% range and adjusted earnings before interest and taxes are close to breaking even.

In a separate bid to strengthen its balance sheet, Aston Martin last week agreed a £50m deal to sell the perpetual brand rights to its Formula One team.

Despite cost-cutting measures and asset disposals, the company faces continued scrutiny from investors over its long-running turnaround plan, as it tries to rebuild profitability in a turbulent global market.