Luxury carmaker Aston Martin is to cut 5% of its workforce, amounting to 170 jobs, in an effort to save £25 million amid rising losses and debt.
The company reported a sharp 48.7% increase in adjusted pre-tax losses to £255.5m for the year ending December 31, with net debt rising 43% to £1.16 billion.
Chief executive Adrian Hallmark, who took the helm last year as the company’s fifth CEO in five years, said that while progress had been made in controlling operating expenses in 2024, further improvements were needed to strengthen financial performance and drive operational efficiencies.
Aston Martin has also postponed the launch of its first battery electric vehicle (BEV) to the latter part of the decade, instead prioritising hybrid technology. The company’s mid-engine plug-in hybrid electric vehicle (PHEV), the Valhalla, is expected to be a key contributor to financial performance over the next few years.
With only 999 units planned for production and a reported price of £850,000, deliveries of the Valhalla are set to begin in the second half of 2025. The company expects this model to help drive positive adjusted operating earnings and free cash flow in 2025, with overall core wholesale volumes remaining similar to 2024 levels.
The shift in strategy mirrors broader trends in the automotive industry. Stellantis, Volkswagen and Porsche are among several European automakers that have announced job cuts amid rising costs and weak demand in key markets such as China.
Additionally, the threat of 25% auto tariffs under a potential new US administration poses further risks to the industry.
