British luxury automaker Aston Martin announced it will cut its workforce by up to 20% from around 3,000 employees, a move the company says should produce roughly 40 million pounds ($54 million) in annualised cost savings. The firm did not give a precise timetable for the reductions, but indicated that most of the savings are expected to materialise within the current year. The announced headcount reduction builds on a previously disclosed 5% reduction announced last year.
Alongside the planned job cuts, Aston Martin lowered its five-year capital spending plan to 1.7 billion pounds from a prior 2 billion pounds by delaying planned investments in electric vehicle technology. The company framed the adjustments as part of a broader effort to conserve cash and improve financial performance after a difficult period of disrupted trade and weak demand.
In early trading following the announcement, Aston Martin shares rose nearly 5% after suffering declines across nine consecutive sessions. The company reported an operating loss of 259.2 million pounds in 2025 and carries net debt of 1.38 billion pounds.
Aston Martin said that U.S. tariffs have been "extremely disruptive" to its business and that demand in China has been "extremely subdued". As a result, management expects further cash outflows in 2026 even as it forecasts a "material improvement" in financial results. The company is targeting gross margins in the high 30% range and adjusted earnings before interest and taxes close to breakeven, a recovery it says will be supported in part by around 500 deliveries of its new Valhalla hybrid supercar.
To help bolster liquidity, Aston Martin last week completed a 50-million-pound deal selling the perpetual branding rights to its Formula One team. The company has also received capital injections from Chairman Lawrence Stroll and through other transactions as it manages its balance sheet and funding needs.
Management did not offer detailed timing for the workforce reductions or for the full schedule of delayed capital projects. Nor did it provide additional specificity about the expected mix of cost savings across regions or functions. The company reiterated its financial targets but acknowledged that further cash outflows are likely in the coming year even as it pursues margin and profitability improvements.
Exchange rate noted by the company: $1 = 0.7395 pounds.