By ANGHARAD CARRICK, BUSINESS NEWS EDITOR
Aston Martin will cut a further 20 per cent of its workforce after reporting lower-than-expected profits, as it battles pressure from US tariffs.
It is the second round of job cuts in what has been a difficult year for the luxury carmaker, as it deals with falling sales in the face of US tariffs, which it described as 'extremely disruptive'.
The 25 per cent tariff on car imports added more costs to Aston Martin's cars in one of its key markets. While a UK-US tariff deal, which capped levies at 10 per cent, provided some relief it has still weighed on performance.
Aston Martin delivered 10 per cent fewer cars last year – 5,448 in total – with pre-tax profits widening to £363million.
Chief executive Adrian Hallmark said the market had faced 'one of its most turbulent years' in 2025, with 'extremely subdued' demand in its key Chinese market compounding losses.
Shares in Aston Martin rose 2.8 per cent this morning.
Canadian billionaire Lawrence Stroll took control of the brand in 2020, and has tried to turn around the carmaker's fortunes, but it has issued a succession of profit warnings in recent years.
The exclusive Valhalla supercar helped to boost Aston Martin's Q4 performance but layoffs loom at the luxury automotive company
Aston Martin said its cash reserves are £250million, boosted by its plans to sell its permanent naming rights to its Formula One team.
As it struggles to boost sales, Aston Martin's debt pile has ballooned to £1.38billion.
After cutting 170 jobs last year, it now plans to cut a further 20 per cent of the workforce. It said this 'necessary action' would save £40million.
Renowned as the car brand favoured by James Bond, Aston Martin said retail sales – those sold directly to consumers – had outpaced wholesale.
Wholesale volumes in APAC, excluding China, were weaker than expected, falling 25 per cent, while volumes in the UK were 'reasonably robust', falling just 3 per cent, and representing 19 per cent of total volumes.
Delivery of 152 of its new Valhalla models helped to boost the fourth quarter and the car brand expects to deliver around 500 this year.
Looking ahead, Aston Martin expects wholesale volumes to be similar this year amid uncertainty over additional tariffs and changes to China's ultra-luxury car taxes.
Mark Crouch, market analyst for eToro, said: 'For one of the most evocative badges in motoring, branding alone can't refinance £1.38bn of net debt. Leverage at these levels leaves little room for error, especially with tariffs biting and luxury car demand patchy at best.
'Cutting 20 per cent of the workforce may steady costs for Aston, but it also underlines the pressure under the bonnet.
'At some stage the market stops admiring the paintwork and starts inspecting the engine. Management is pinning its hopes on the latest model cycle, DBX S, Vantage S, the Vanquish V12 and, of course, Valhalla to restore margins and momentum.
'But Aston has often relied on the next launch to change its fortunes. At some point, the market may wonder whether the problem isn't the cars, but the economics of building them.'
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