Things aren’t going to plan for Aston Martin, both on the racetrack and in the showrooms, with the UK carmaker now slashing one-fifth of its workforce in an effort to raise funds.
In the wake of a complicated Formula 1 testing process which consistently saw its Honda-powered challengers among the slowest cars on the timesheets, Aston Martin announced the harsh job cuts to its existing staff of approximately 3000 people.
Said to deliver about £40 million (A$76.1 million) in annual savings, the majority of the monetary boosts delivered from the job cuts are expected to be seen in the company’s financial balances this year.
According to Aston Martin, it has been hit hard by “extremely disruptive” tariffs in the US, as well as “extremely subdued” demand in China, two of the brand’s most important markets.
“The year made one reality impossible to ignore: even the most resilient luxury brands are not insulated from geopolitical friction, and the headwinds created by these trade barriers have reshaped the competitive environment in ways that require us to adapt and take difficult decisions.”
Earlier this month, Aston Martin officially announced it had sold the rights to use its name for the Formula 1 team, which remains controlled by Lawrence Stroll, father of driver Lance Stroll.
In addition to the job cuts, Aston Martin has cut its five-year capital spending plan from £2 billion (A$3.8 billion) to £1.7 billion (A$3.2 billion), with a bulk of the savings related to delayed EV investments.
Aston Martin already has a partially battery-powered model in the plug-in hybrid Valhalla, though we’ll need to wait longer to see its first true EV.
Initially due to launch in 2025, last March it was pushed back to 2026, before a delayed arrival in 2027 was most recently delayed to 2030 in February this year.
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