Aston Martin will cut up to 20% of its workforce to save about £40m. The move could affect roughly 500 employees.
The luxury carmaker confirmed the plan after reporting pre-tax losses of £363.9m for 2025. Losses rose from £289.1m the previous year. The company had already cut 170 jobs at the start of 2024.
The group said it must reshape the business for future plans. It called the decision difficult but necessary. Chief executive Adrian Hallmark said the reductions form part of a broader restructuring to make the company leaner.
Weak demand and higher US tariffs hit trading during the year. Aston Martin also faced supply chain disruption and a volatile global policy environment. The company described 2025 as one of its most turbulent periods.
Demand in China remained extremely subdued. Changes to luxury car tariffs and a slowing economy reduced sales in a key market.
Investors had expected poor results after five profit warnings since September 2024. The company also sold the permanent naming rights to its Formula One team to raise funds.
Aston Martin’s shares have lost most of their value since its 2019 stock market listing. The business has struggled with heavy losses, excess dealer stock and production problems.
Analysts said external pressures do not explain the full picture. They warned that job cuts and asset sales alone will not restore long-term growth. A sustained recovery will depend on higher sales volumes and improved efficiency.
Shares fell 2% after the announcement.
