London (AFP) – British luxury carmaker Aston Martin Lagonda on Wednesday announced plans to cut up to 20 percent of its workforce after widening annual losses on US tariffs and weak Chinese demand. The job losses total around 600, with Aston Martin employing some 3,000 people, mostly in the UK. The carmaker, which has struggled for several years, added in a statement that its net loss jumped 52 percent last year to £493.2 million ($667 million), compared with 2024. Group annual revenue dropped 21 percent to £1.258 billion as car sales for the brand beloved by fictional British spy James Bond fell 10 percent to 5,448.
– ‘Turbulent year’ – Aston Martin said its latest cost-cutting programme will ultimately see the departure of up to 20 percent of our valued workforce. Group chief executive Adrian Hallmark added that the global luxury automotive market last year “faced one of its most turbulent years 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.” Automakers had been among the companies hit hardest by the US tariffs onslaught in 2025 as President Donald Trump sought to bring auto production back to the United States. Aston Martin limited imports to the US in April and May while awaiting a trade agreement between London and Washington. It resumed shipments in June after the deal slashed tariffs on UK car exports to 10 percent from 27.5 percent, on a limit of 100,000 vehicles annually.
Aston Martin on Wednesday said that the outlook for the automotive industry “remains challenging” amid “uncertainties over the economic impact from the unpredictable threat or introduction of additional US tariffs, changes to China’s ultra-luxury car taxes and the continued reliance on a stable network of global suppliers.” The group added that “while China remains a market with long-term growth potential, demand there remained extremely subdued in line with other luxury automotive peers.”
– Share price up – Aston Martin expects “material improvement in financial performance” this year, “driven by an enhanced product mix, benefits from the ongoing transformation programme and disciplined approach to operations.” The group’s share price rose slightly in London following the updates.
“The poor performance is being blamed on external factors, such as US tariffs and macroeconomic uncertainty,” noted Aarin Chiekrie, an equity analyst at Hargreaves Lansdown. “But looking under the hood reveals some internal issues, making Aston Martin’s road to redemption more difficult. Production delays hampered the group’s performance, leading to multiple profit downgrades over the last year,” he added.
Faced with financial difficulty, Aston Martin last week said it would sell the naming rights to the Aston Martin Formula One team for £50 million. Aston Martin Lagonda’s biggest shareholder is the Yew Tree Consortium, led by Canadian Lawrence Stroll, whose son Lance Stroll drives for the Formula One team.
© 2024 AFP
