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04 Jun 2020 | 07:05

Aston Martin to axe 500 jobs in bid to save cash

(Sharecast News) - Luxury car marker Aston Martin said it was axing up to 500 jobs as it cut back production of front-engined sports cars to focus on its DBX sports utility model. The company on Thursday said its restructuring plan would save £18m a year in operating and manufacturing costs and £10m in capital expenditure.

Aston Martin last month posted a big first-quarter loss after sales dropped by almost a third due to the impact of the coronavirus outbreak. It was already feeling the effect of the US-China trade war with demand slumping from wealthy Chinese customers.

"Aston Martin continues to take decisive action in other areas to reduce cost and remove non-critical expenditure from the business at every level including in areas such as contractor numbers, site footprint, marketing and travel.costs," the company said in a statement.

It added that the DBX remained on track for deliveries in the summer and had a strong order book.

"The measures announced today will right-size the organisational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability," Aston Martin said.

On Monday major shareholder Investindustrial Advisors Ltd cut its stake in the UK carmaker by nearly 5% to 14.99%.

The Italian private equity group is the company's second-biggest shareholder after Canadian billionaire Lawrence Stroll.
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