Aston Martin to cut jobs and axe 20% of workforce as net losses rise
BBC World
February 25, 2026
AI-Generated Deep Dive Summary
Aston Martin has announced significant job cuts as part of efforts to address its rising financial challenges. The luxury carmaker plans to reduce its workforce by 20%, affecting approximately 600 employees, due to increased net losses of £493.2 million in 2025—a 52% increase from the previous year. The company attributes its struggles to U.S. tariffs imposed by former President Donald Trump and subdued demand in China, the world's largest automotive market. These measures are expected to save around £40 million annually.
The firm, based in Gaydon, Warwickshire, employs about 3,000 people globally, with the majority of job losses likely to occur in the UK. The cuts will impact roles across the business, including factory staff. Aston Martin also revealed it has revised its five-year capital spending plan, reducing it by £300 million to £1.7 billion, as part of efforts to delay investments in electric vehicle technology.
In a statement, Aston Martin acknowledged the difficult decision to implement further changes after reassessing its organizational structure at the start of 2025. The company emphasized that these adjustments are necessary to ensure it is appropriately resourced for future plans. While the exact timeline for the job cuts was not specified, the majority of savings are expected to be realized this year.
These developments highlight the broader challenges faced by luxury automakers in a changing global market. U.S. tariffs and weak demand in China have significantly impacted Aston Martin's operations, underscoring the financial strain on businesses reliant on international trade. The company’s decision to delay investments in electric vehicles also raises questions about its ability to compete in an increasingly electrified automotive industry.
Overall, these job cuts reflect a broader restructuring trend among luxury carmakers adapting to economic and market shifts. For readers interested in global business and politics, this story illustrates how protectionist policies and shifting consumer demands can force even iconic brands to make tough decisions about their workforce and
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Originally published on BBC World on 2/25/2026