Aston Martin has announced a significant reduction in its workforce and a review of its product strategy, in response to heavy financial losses and structural challenges in the automotive industry.
The luxury carmaker seems to be going through turbulent times : with a net loss of £323.5 million for the 2024 financial year and falling sales, Aston Martin has decided to reduce its workforce by 5%, or around 170 positions, with the aim of generating savings of £25 million ($31.61 million) and adjusting its organizational structure.
Staff cuts prompted by disappointing results
It’s worth recalling that Aston Martin‘s financial results for the year ended December 31, 2024 fell short of expectations, marked by an adjusted pre-tax loss of £255.5 million, a loss of 48.7% on the previous year. This was exacerbated by net debt of £1.16 billion, up 43% on 2023.
According to Aston Martin, these results were mainly due to an almost 10% drop in vehicle sales, the direct consequence of a series of unfavorable factors, including disruptions in the supply chain, a delayed launch schedule for new models, and difficult economic conditions in China.
The Chinese market, a key sector for luxury cars, particularly impacted Aston Martin’s performance. Increased caution on the part of Chinese consumers led to a drop in demand for high-end products, particularly in the automotive sector.
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Read also > Aston Martin revises its outlook for 2024
Featured photo : © Aston Martin
