Aston Martin Cuts Workforce Amid Rising Losses and Debt

February 26, 2025 – LONDON, England – Aston Martin, the renowned British luxury car manufacturer, has announced significant cuts to its workforce as it grapples with mounting losses and debt. The company plans to reduce 5% of its workforce, approximately 170 jobs, in an effort to save £25 million ($31.61 million).

Chief Executive Adrian Hallmark cited a sharp rise in pre-tax losses, which surged by 21% to £289 million for the year ending December 31, 2024. Aston Martin’s net debt has increased by 43% to £1.16 billion, and the firm reported a 9% decline in wholesale volumes for the year, totaling 6,030 cars.

“While we began to make progress on the group’s adjusted operating expenses in FY 2024, we need to deliver more improvements to support future financial performance and drive operating leverage,” Hallmark stated in a press release.

The job reductions will affect various departments, primarily in the United Kingdom, including roles in manufacturing and management. Only 20 jobs are expected to be lost overseas. The company’s Gaydon headquarters and its factory in St Athan, South Wales, will experience the most significant cuts.

These layoffs come in the wake of disappointing forecasts for mid-single-digit percentage growth in wholesale volumes for 2025, which fell short of analysts’ expectations. Barclays’ analysts noted that lower-than-expected demand and a need for improved order books indicate persistent weakness in the luxury and sports car market.

In its strategic shift, Aston Martin has delayed the launch of its first fully electric vehicle, initially set for 2026, and is instead focusing on the mid-engined Plug-in Hybrid Electric Vehicle (PHEV) known as ‘Valhalla.’ Hallmark described the Valhalla as a “significant contributor” to the company’s future financial performance, with deliveries slated to begin in the second half of 2025.

“The cuts are a difficult but necessary action,” Hallmark explained. “We must ensure the company is appropriately resourced for its future plans.”

Since being acquired by Canadian billionaire Lawrence Stroll in 2020, Aston Martin has undertaken several new model launches, including the Vantage and DBX707, as part of its strategy to revitalize its brand. Despite these efforts, the company’s overall sales have not met expectations, prompting the urgent need for cost-savings.

Hallmark emphasized that transitioning from a “high-potential business to a high-performing one” is essential for navigating future industry challenges. The restructuring aims to position Aston Martin to better capitalize on opportunities within the evolving automotive market.

In summary, Aston Martin’s decision to cut its workforce marks a significant step in addressing its financial challenges as it strives to regain stability and profitability.