Aston Martin is planning to cut up to 500 jobs from its 2600-strong workforce as part of a £10 million cost-cutting programme in the wake of the coronavirus crisis.
The struggling British car maker says that the planned job cuts are intended to help boost profitability by bringing its cost base in line with reduced production levels of its sports car lines.
That's part of recently outlined plan that Aston Martin says will enable it to deliver profitable growth.
In a statement, Aston Martin said that strategic plan requires a “fundamental reset, which includes a planned reduction in front-engined sports car production to rebalance supply to demand”.
Aston Martin will launch a consultation process with employees and trade unions over the job cuts, which it says are part of a range of “decisive” actions taken to lower costs and expenditure.
These include operating cost-cuts of around £10m in addition to a previously announced set of £10m savings. Aston Martin also planning to reduce manufacturing costs by £8m and capital expenditure by £10m, with related cash restructuring costs totalling £12m this year.
Aston Martin recorded a pre-tax loss of £118.9m in the first three months of 2020, with sales and production affected by the pandemic. The firm is gearing up to launch the crucial DBX SUV this year and recently named Mercedes-AMG chief Tobias Moers as its new chief executive to replace Andy Palmer.
Meanwhile, a regulatory filing recently revealed that Aston Martin's second-biggest shareholder, Investment Industrial Advisors Limited, has reduced its stake in the firm. In the document, the company listed a stake of 14.99% in the British car maker, compared with 19.92% previously.