Aston Martin slashes jobs and EV spending amid plunging sales and losses

Aston Martin has announced significant job cuts and a reduction in spending as it grapples with declining sales and financial losses. The luxury carmaker will reduce its workforce by up to 20% and scale back investment in electric vehicle technology. These moves come after a challenging period marked by weak demand in key markets like the USA and China.

The company has faced substantial challenges since 2024. Sales in the USA and China have plummeted, lagging behind rivals such as Ferrari and Lamborghini. Production delays, late model launches, and intensifying competition from electric luxury cars have all contributed to the decline. US tariffs have also been described as 'extremely disruptive' to the business.

To cut costs, Aston Martin will reduce its five-year capital spending plan to £1.7 billion. This includes postponing investments in electric vehicle development. The workforce, currently around 3,000 employees, will shrink by up to 20%, leading to annual savings of about £40 million by 2026.

Financially, the company reported an operating loss of £259.2 million in 2025. While further cash outflows are expected in 2026, management has forecast a 'material improvement' in performance. The brand's Formula One team secured a £50 million deal by selling perpetual branding rights, providing some financial relief.

Despite the setbacks, Aston Martin aims for gross margins in the high 30% range and near-breakeven earnings by 2026. Demand in China, the world's largest auto market, remains 'extremely subdued', adding to the pressure on recovery.

The job cuts and reduced spending reflect Aston Martin's efforts to stabilize its finances amid a tough market. The company expects savings of £40 million per year, mostly from 2026 onwards. However, its financial turnaround will depend on improved sales and tighter cost controls in the coming years.