The British luxury automaker said the reductions would affect around 600 employees out of a total workforce of approximately 3,000, most of whom are based in the UK, News.Az reports, citing AFP.
The company’s net loss surged 52% last year to £493.2 million ($667 million), compared with 2024. Group annual revenue fell 21% to £1.258 billion, while vehicle sales declined 10% to 5,448 units. The brand, famously associated with fictional British spy James Bond, has faced persistent financial challenges in recent years.
Aston Martin said its latest cost-cutting “programme will ultimately see the departure of up to 20 percent of our valued workforce.”
Chief Executive Adrian Hallmark described the past year as one of the most turbulent periods for the global luxury automotive market in recent times.
“Consumer demand was impacted by escalating geopolitical uncertainties and macroeconomic challenges, the most notable being the introduction of increased tariffs in both the United States and China,” Hallmark said.
Automakers were among the sectors hardest hit by US tariffs introduced in 2025, as President Donald Trump sought to boost domestic auto production. In response, Aston Martin temporarily limited imports to the US in April and May while awaiting a trade agreement between London and Washington.
Shipments resumed in June after a deal reduced tariffs on UK car exports to 10% from 27.5%, subject to a cap of 100,000 vehicles annually.
Despite the easing of tariffs, Aston Martin warned that the industry outlook remains challenging. The company cited uncertainties surrounding potential additional US tariffs, changes to China’s ultra-luxury car taxes, and continued reliance on stable global supply chains.
While describing China as a market with long-term growth potential, the company said demand there remained “extremely subdued,” mirroring trends seen by other luxury automotive brands.
Aston Martin expects a “material improvement in financial performance” this year, driven by a stronger product mix, ongoing transformation initiatives and tighter operational discipline.
Shares in the company edged slightly higher in London following the announcement.
Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, said the weak results were largely attributed to external pressures such as tariffs and macroeconomic uncertainty. However, he added that internal challenges have also weighed on performance.
“Production delays hampered the group’s performance, leading to multiple profit downgrades over the last year,” Chiekrie noted.
In an effort to strengthen its finances, Aston Martin last week announced it would sell the naming rights to the Aston Martin Formula One team for £50 million.
The company’s largest shareholder is the Yew Tree Consortium, led by Canadian businessman Lawrence Stroll. His son, Lance Stroll, competes for the Aston Martin Formula One team.
