Aston Martin has announced plans to reduce its global workforce by around 20% after reporting steep annual losses, as the luxury carmaker faces weak demand and the impact of US trade tariffs. The Gaydon-based manufacturer posted net losses of £493.2 million for 2025, up 52% from the previous year, while operating losses reached £259.2 million. With a workforce of approximately 3,000 employees, the cuts are expected to affect roughly 600 roles, primarily in the UK.
The company said the restructuring programme is projected to generate annual savings of around £40 million, most of which will be realised during 2026. Aston Martin confirmed that the reductions will affect roles across the business, including factory positions, but did not provide a detailed timetable.
Aston Martin cited “extremely disruptive” US tariffs introduced under former President Donald Trump and subdued demand in China as key factors contributing to the financial losses. The US market, a major territory for the brand, has been significantly affected by the tariffs, the company said.
“Having undertaken at the start of 2025 a process to make organisational adjustments to ensure the business was appropriately resourced for its future plans, we had to take the difficult decision at the end of 2025 to implement further changes,” Aston Martin said in a statement. “This latest programme will ultimately see the departure of up to 20% of our valued workforce.”
The job cuts are part of a broader strategy to stabilise Aston Martin’s finances following years of volatility. The company has also reduced its five-year capital expenditure plan from £2 billion to £1.7 billion, delaying investment in electric vehicle development as it focuses on short-term cash preservation. The shift comes amid a slowdown in EV demand across the luxury segment and rising borrowing costs affecting automakers worldwide.
Aston Martin anticipates further cash outflows in 2026 but expects a “material improvement” in financial performance, driven in part by the launch of its £850,000 Valhalla hybrid supercar. The company forecasts around 500 deliveries of the model, which are expected to improve margins. It is targeting gross margins in the high 30% range and adjusted earnings before interest and taxes close to break-even.
In a separate move to strengthen its balance sheet, Aston Martin agreed last week to sell perpetual branding rights to its Formula One team for £50 million.
Despite the cost-cutting measures and asset sales, the company continues to face scrutiny from investors over its long-running turnaround plan as it seeks to restore profitability in a turbulent global market.
