Aston Martin Layoffs: British Luxury Carmaker To Cut 20% of Workforce, Reduce Capital Expenditure Amid Global Trade Pressures

Gaydon, February 25: British luxury car manufacturer Aston Martin Lagonda Global Holdings Plc announced on Wednesday that it will reduce its total workforce by 20% as part of a broader restructuring plan. The decision follows significant financial disruption caused by new United States trade tariffs and a prolonged period of weak consumer demand within the Chinese market.

The Gaydon-headquartered firm confirmed that the job cuts will affect approximately 600 positions out of its 3,000-strong global workforce. This consolidation includes a previously announced 5% reduction from 2025, with the automaker aiming to save approximately GBP 40 million, or 54 million USD, primarily within the current financial year. JSW MG Motor to Invest USD 440 Million in India for EV and Hybrid Expansion.

Revised Capital Expenditure and Electric Vehicle Delays

In addition to the personnel reductions, Aston Martin has significantly scaled back its medium-term investment strategy. The company’s five-year capital expenditure plan has been lowered to GBP 1.7 billion, down from the earlier estimate of GBP 2 billion.

A primary driver of this saving is the decision to delay investments in electric vehicle technology. While the industry continues to pivot toward electrification, Aston Martin is prioritising immediate liquidity and debt management. The company currently carries a debt load of GBP 1.28 billion, despite multiple rounds of capital infusion led by Executive Chairman Lawrence Stroll.

Impact of US Tariffs and Chinese Market Slowdown

The automaker described the impact of recent US tariffs as “extremely disruptive” to its global operations. The United States remains a critical region for luxury vehicle sales, and the additional costs have pressured profit margins already strained by a "subdued" luxury sector in China.

While the company anticipates further cash outflows throughout 2026, management remains optimistic about a "material improvement" in financial performance later in the year. The market responded with cautious optimism to the cost-cutting measures, as Aston Martin shares rose 5.01% to 59.75 British pence during Wednesday morning trading in London.

Long-term Financial Challenges

Despite the morning stock surge, the heritage brand continues to face steep valuation challenges. Data from the London Stock Exchange indicates that the company’s share price has depreciated by more than 92% over the last five years and nearly 47% over the past twelve months. Ola Electric Shares Decline Amid Ongoing Legal Challenges, EV Maker To Reduce Physical Stores by 550 by the End of March.

Currently, the firm’s market capitalisation stands at approximately GBP 576.09 million. By reducing headcount and slowing its transition to an all-electric line-up, the company is attempting to stabilise its balance sheet and protect its remaining cash reserves in a volatile international trade environment.

(The above story first appeared on LatestLY on Feb 25, 2026 09:22 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).