Aston Martin to lay off 20% of its employees
What's the story
Luxury carmaker Aston Martin has announced a major downsizing plan, with plans to cut 20% of its workforce. The decision comes after the company's annual profit fell short of expectations, largely due to weak demand and tariff pressures. The company has been struggling with a US quota-based tariff system that it described as "extremely disruptive," along with subdued demand in China.
Financial woes
Debt burden and cash generation challenges
Aston Martin has been grappling with cash generation and managing its £1.38 billion debt burden. These issues have continued to impact the company's performance, despite several capital injections over the years. The luxury automaker is best known as the car brand driven by James Bond, but its financial struggles have been far from cinematic.
Future outlook
Hope for future improvement
Despite the current financial challenges, Aston Martin is hopeful for an improvement in its financial situation after 2026. The company has already warned investors of further cash outflows in that year. This projection underscores the ongoing difficulties the luxury carmaker faces amid a challenging market environment as well as tariff pressures.