Aston Martin will cut up to 20% of its workforce in a bid to save about £40m. The move could affect around 500 employees.
The luxury carmaker confirmed the plan after reporting deeper pre-tax losses for 2025. Losses rose to £363.9m from £289.1m the previous year. The company had already reduced 170 roles at the start of 2024.
The group said it must restructure to match future needs. Chief executive Adrian Hallmark called the job cuts an important step toward a leaner business. He added that the measure alone will not solve all efficiency problems.
Weak demand and higher US tariffs hit trading during the year. The company also faced supply chain disruption and an unpredictable global policy environment. It described 2025 as one of its most turbulent periods.
Aston Martin struggled in China, a key market, where demand for luxury cars remained subdued. Changes to local tariff rules added further pressure.
Investors had expected poor results after five profit warnings since September 2024. The company also sold the permanent naming rights to its Formula One team to raise funds.
The carmaker, headquartered in Gaydon with a factory in St Athan, has lost most of its market value since its 2019 stock market listing. It has battled falling sales, excess dealer stock and production difficulties.
Analysts said external pressures only partly explain the downturn. They warned that asset sales and job cuts cannot restore long-term growth on their own. Higher output and stronger demand will be essential for recovery.
Aston Martin shares fell about 2% following the announcement.
