Aston Martin to cut 5% of workforce
Aston Martin, one of the global luxury car manufacturers, has announced a 5% reduction in its workforce following significant losses in the last quarter of the year. This decision comes as the company struggles to adapt to the rapid industry shift towards electric vehicles, which are gaining increasing market share in key regions.
The company stated that the job cuts will contribute to savings of approximately £25 million. It also revealed a 400% increase in pre-tax losses in the fourth quarter, alongside a 9% decline in wholesale sales over the past year. Aston Martin"s debt has risen to £1.16 billion ($1.47 billion), marking a 43% increase compared to 2023.
Aston Martin"s CEO, Adrian Hallmark, attributed the poor performance to "industry-wide supply chain disruptions" and "economic weakness in China," where the company"s sales dropped by 49% compared to the previous year.
Like many traditional car manufacturers, Aston Martin faces growing pressure to keep up with fierce competition from leading electric vehicle companies such as Tesla, BYD, XPeng, and NIO, further complicating its efforts to maintain its market position.
