Aston Martin looks to axe 500 jobs and cut sports car production

British firm to build fewer sports cars and cut up to 20% of its workforce in £30 million cost saving restructure

Aston Martin has announced that it is looking to make up to 500 staff redundant and reduce production of its sports cars as it looks to save £30 million in a bid to improve cost efficiencies across its business as it fights to deliver profitable growth. 

In an announcement to the stock exchange Aston Martin explained that its plan ‘requires a fundamental reset which includes a planned reduction in front-engined sports car production to rebalance supply to demands.’ It also confirmed that deliveries of the first DBX models are on track to be delivered this summer. 

A consultation period with employees and trade unions will see Aston Martin look to reduce its current 2600 workforce by 500, with the majority of losses expected to be in the UK as the company strives to improve productivity and reduce production costs. The number of contractors employed will also be reduced. 

A fall in demand in 2019 for Vantage, DB11 and DBS due to China’s economic downturn and uncertainty over Brexit left Aston Martin with a stockpile of cars that required heavy discounting and incentives to be sold. As Aston Martin was dealing with these challenges COVID-19 struck, leaving the company, along with every other car manufacturer, facing a steep downturn in demand and looking at a very different future. Therefore, it will reduce production at its Gaydon factory to allow output to match the new lower demand. 

Employee and production numbers are not the only areas of the business Aston Martin will be restructuring ahead of new CEO Tobias Moers starting on 1st August. It will be looking at all of its ten sites across the UK to make cost savings and will also reduce its marketing and travel expenditure. The result of these changes should result in a £10 million saving in operating costs and £8 million in savings in production costs due to the planned drop in volume, with a further £10 million saved via a reduction in capital expenditure. 

With the announcement last week that Andy Palmer was to stand down as CEO and President with immediate effect, to be replaced by current AMG chief Tobias Moers in August, Chairman Lawrence Stroll is wasting no time with his attempts to get Aston Martin back on the road.

Recommended

Aston Martin gives you (new) wings
Aston Martin new logo
News

Aston Martin gives you (new) wings

A new logo and ‘brand repositioning’ set to kick-start Aston Martin’s plans for growth
20 Jul 2022
Aston Martin sells £78m stake to Saudi Arabia investment fund
AM DBX707
News

Aston Martin sells £78m stake to Saudi Arabia investment fund

Troubled car maker raises £635 million in new funding
15 Jul 2022
Tobias Moers steps down as CEO, Aston Martin appoints ex-Ferrari boss
Moers
Aston Martin

Tobias Moers steps down as CEO, Aston Martin appoints ex-Ferrari boss

British manufacturer announces departure of Tobias Moers as ex-Ferrari boss takes the reigns at Gaydon
4 May 2022
Aston Martin Vantage vs Audi R8 V10 RWD – back to basics
Aston Martin Vantage vs Audi R8
Features

Aston Martin Vantage vs Audi R8 V10 RWD – back to basics

Can forgoing performance-enhancing technology such as an auto gearbox or four-wheel drive make for a more engaging car? The new manual Aston Martin Va…
7 Mar 2022

Most Popular

Porsche 911 Sally Carrera Special Edition revealed
Porsche Sally Carrera – front quarter
News

Porsche 911 Sally Carrera Special Edition revealed

Porsche’s been collaborating with Pixar on this one-off special that’ll be sold at Car Week for charity
12 Aug 2022
Best Impreza Colin McRae Edition review – homage to McRae's championship 555 racer
Subaru Impreza Turbo 555 – header
Videos

Best Impreza Colin McRae Edition review – homage to McRae's championship 555 racer

We drive an original Group A Subaru Impreza 555 rally car, as well as the £370,000 contemporary homage Best Engineering has created in its image
12 Aug 2022
231mph Ultima GTR640 on the Isle of Man – evo Retro
Ultima GTR640
Features

231mph Ultima GTR640 on the Isle of Man – evo Retro

The Ultima GTR640 is one of the fastest accelerating road cars ever built. John Barker channels his inner racer and unleashes it on the Isle of Man TT…
11 Aug 2022