The British luxury automaker famous for producing James Bond’s vehicles announced Wednesday it will eliminate up to one-fifth of its workforce as the company grapples with challenges from US import duties and declining sales in China.
The workforce reduction will affect approximately 600 positions out of Aston Martin’s total staff of roughly 3,000 employees. Company officials expect these layoffs to generate annual cost savings of approximately 40 million pounds, equivalent to $54 million. While the automaker didn’t provide a specific timeline for implementing the cuts, executives indicated the majority of savings would be realized within this year. These reductions build upon a 5% workforce decrease that was announced previously.
The company also scaled back its five-year investment blueprint, reducing planned capital expenditures from 2 billion pounds to 1.7 billion pounds by postponing investments in electric vehicle development.
Following the announcement, Aston Martin’s stock price jumped nearly 5% during early trading, breaking a nine-day losing streak.
The automaker, renowned for its association with the iconic spy franchise, has faced ongoing difficulties generating sufficient cash flow while managing substantial debt totaling 1.38 billion pounds. The company has stayed afloat through capital investments from Canadian billionaire Lawrence Stroll, who serves as Chairman, along with various financial arrangements.
Company executives described US tariffs as “extremely disruptive” to operations, while also noting that consumer demand has been “extremely subdued” in China, which represents the globe’s largest automotive marketplace.
Looking ahead, Aston Martin anticipates additional cash outflows through 2026, though management forecasts “material improvement” in the company’s financial health. The automaker has established targets for gross profit margins in the high 30% range and aims for adjusted earnings before interest and taxes to approach breakeven levels. These goals are supported by plans to deliver approximately 500 units of the company’s new Valhalla hybrid supercar.
Financial records show the company recorded an operating loss of 259.2 million pounds in 2025.
In another move to strengthen its financial position, the automaker recently completed a 50-million-pound transaction selling the permanent branding rights to its Formula One racing team.
