Aston Martin is implementing a cost-cutting plan that includes a 5% reduction in its workforce, affecting 170 employees, following a challenging year marked by increased losses and lower sales volumes.
Job Cuts and Financial Struggles
The luxury car manufacturer, known for its association with James Bond, saw its pre-tax losses widen by 21% to £289 million. This downturn comes after a drop in wholesale volumes and a 43% increase in its debt, reaching £1.16 billion. Despite these challenges, Aston Martin is aiming for annual savings of £25 million, with approximately half of that expected this year. The company cited supply chain issues and production delays as contributing factors to the downturn. Adrian Hallmark was recently appointed as the new chief executive.
Aston Martin has announced plans to cut 170 jobs as part of a cost-cutting plan.
Strategic Initiatives and Future Plans
Since 2020, when Canadian billionaire Lawrence Stroll acquired Aston Martin, the company has focused on new model launches to revitalize its performance. Launches of the new Vantage and DBX707 models helped boost production volumes in the second half of the year, with wholesale volumes up 10% year-on-year.The company also launched its flagship Vanquish model in September. However, overall wholesale volumes were still down 9% at 6,030 cars. The company is working to improve its financial standing.
Mr. Hallmark stated that the company is navigating a period of intense product launches, paired with overall industry challenges. He emphasized his goal to transition Aston Martin into a high-performing business.
James Bond’s car of choice, Aston Martin, has been making moves to recover financially.
In September, Aston Martin had already warned of production impacts due to supply chain problems. The manufacturer is also facing weak market trading in China resulting from a decrease in demand across the country.
