Aston Martin will cut up to 20% of its workforce as it tries to save about £40m. The move could affect around 500 employees and follows 170 job cuts at the start of 2025.
The luxury carmaker announced the decision while reporting deeper financial losses. Pre-tax losses reached £363.9m for 2025, up from £289.1m the previous year. Weak demand, US tariffs and supply chain problems all hit performance.
The company said it had already reviewed its structure earlier in the year. It described the latest redundancies as a difficult but necessary step to prepare for future plans. Chief executive Adrian Hallmark said job cuts alone would not fix the business but would help make it leaner and more efficient.
Investors had expected bad results after the firm issued five profit warnings since September 2024. Aston Martin also sold the permanent naming rights to its Formula One team to raise cash.
The carmaker, based in Gaydon with a plant in St Athan, has struggled since its 2019 stock market listing. It has faced heavy losses, production issues and excess dealer stock. Donald Trump’s trade tariffs added further pressure in 2025 by increasing costs and squeezing margins.
Demand in China remained extremely weak, which hurt another key market. Changes to local luxury car tariffs and a slowing economy reduced sales.
Analysts said external factors only explain part of the problem. They warned that asset sales and job cuts cannot secure long-term recovery on their own. Future success will depend on higher production and stronger sales volumes.
Aston Martin shares fell 2% after the announcement.
