Aston Martin to cut 5% of workforce as FY losses widen

(Sharecast News) - Aston Martin Lagonda said on Wednesday that it was planning to axe around 5% of its global workforce in a bid to cut costs, as it reported a widening of its losses. In results for the year to the end of December 2024, the car maker said it was kicking off a process "to make organisational adjustments, to ensure the business is appropriately resourced for its future plans".

This will mean the loss of around 170 employees, which it expects to lead to savings of around £25m, 50% of which will be realised in FY 2025.

The company said pre-tax losses widened to £289.1m from £239.8m the year before, with revenue down 3% to £1.58bn and wholesale volumes 9% lower at 6,030.

Aston Martin struck an upbeat note on the outlook, however, saying it expects to make "significant" improvements across all key financial performance metrics in 2025. It expects to deliver positive adjusted EBIT in FY 2025 and free cash flow in the second half.

Chief executive Adrian Hallmark said: "After a period of intense product launches, coupled with industry-wide and company challenges, our focus now shifts to operational execution and delivering financial sustainability. I see great potential in Aston Martin, and our goal is to transition from a high-potential business to a high-performing one, better equipped to navigate future opportunities and uncertainties.

"We have all the vital ingredients for success, with the support of strategic shareholders, the capability of world-class technical partners, a revitalised brand, talented people, and the strongest product portfolio in our 112-year history. This line-up is further strengthened by the upcoming Valhalla, our first mid-engined hybrid supercar, with deliveries starting in H2 2025. Moving forward, my priority is to drive operational excellence and discipline as we continue our transformation into a sustainably profitable company."