Aston Martin To Layoff 5 Percent Of Workforce

Aston Martin will be laying off 170 employees as it attempts to find a path back toward profitability. While the figure is admittedly small, Aston only has a little over 3,000 employees globally. That makes this about as relevant as when one of the big brands (e.g. General Motors) decides to lay off a couple thousand individuals.

The historically British brand is now jointly owned by a mix of wealthy investors, Saudi Arabia’s Public Investment Fund, Zhejiang Geely Holding Group, Mercedes-Benz, Vanguard, and Canadian billionaire Lawrence Stroll — who likewise serves as Chairman of the Board.

Aston Martin Lagonda Global Holdings has endured a substantial decline in its share price since 2018. While its valuation rebounded slightly in 2020, the general trajectory has been steadily downward. Shares were down for last year, despite assurances that the company was ready for a comeback, and have been hovering at (or below) $100 per share since October. That’s a far cry from the $4,500 high witnessed in September of 2018.

The proposed solution is for the company to find avenues for cost cutting while it finalizes its next flagship model. Known as the Aston Martin Valhalla, the car will be a plug-in hybrid that pairs twin electric motors with a twin-turbo 4.0-liter V8 sourced from Mercedes-AMG. An eight-speed dual-clutch automatic transmission will channel the estimated 1,060 horsepower to the wheels and the whole package is supposed to retail for over one-million dollars.

Aston only plans on building 999 examples and will probably need to sell each and every one. But leadership still believes the true key to success will be running a tighter ship.

“After a period of intense product launches, coupled with industry-wide and company challenges, our focus now shifts to operational execution and delivering financial sustainability,” Aston Martin CEO Adrian Hallmark was quoted as saying by Reuters.

From Reuters:

The company pushed back the launch of an all electric car to focus on an ultra-luxury hybrid model and highlighted risks from potential tariffs and softer sales in China.

Several European automakers including Volkswagen, Stellantis, and Porsche AG have announced layoffs amid rising costs and weak demand in key markets like China, and are at risk from U.S. President Donald Trump’s threat of around 25% auto tariffs.

Aston Martin will prioritize its mid-engined Plug-in Hybrid Electric Vehicle (PHEV), ‘Valhalla’, which Hallmark said would be a “significant contributor” to financial performance over the next few years.

Adjusted pre-tax losses reportedly rose by 48.7 percent (to £255.5 million) for the year ending on December 31st, with net debt of 1.16 billion pounds — representing a 43 percent increase year-over-year. Total sales dropped to just 6,030 cars in 2024 and was well below the projected 10,000 deliveries the company had targeted.

The cuts are supposed to not be limited to any single unit within Aston Martin and are part of a plan to lay off about 5 percent of its total workforce in an effort to lower overhead. The company called it a “difficult decision” while suggesting that the measure would save roughly $32 million.

Issuing fresh product, especially one that seems to be as hotly anticipated as the Valhalla, should offer some additional financial help. But the company is going to need to continue building momentum off the hypercar and likely continue streamlining its operations. Sales have continued to decline in China and the United States (one of Aston’s largest markets) may soon have new import tariffs that could complicate things for the brand.

[Images: Aston Martin]

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Source: The Truth About Cars