Aston Martin badge logoAston Martin badge logo

News

Aston Martin to axe up to 500 jobs as it looks to restructure to save £10m

Time 9:09 am, June 4, 2020

Aston Martin plans to axe up to 500 jobs as part of a restructure costing around £12m.

The troubled luxury car manufacturer – whose chief executive Andy Palmer was ousted last week after a collapse in its share price – is to launch consultations on the job losses, which it said had been brought about by lower-than-planned production volumes and improved productivity.

The strategy is intended to create £10m in operating cost savings a year.


It said it would also save some £8m from lower manufacturing costs amid lower demand for sports cars, and would cut capital spending by circa £10m.

Telling investors today (Jun 4) that it will ‘right-size the organisational structure’ in an attempt to improve profitability, it also said its first SUV, the DBX, was on track for deliveries this summer and had a ‘strong order book’.

Palmer, who led Aston Martin since 2014, is being replaced by Tobias Moers, who currently runs Mercedes-AMG.


Aston Martin sales almost halved in the first three months of 2020, as it was hit by the start of the coronavirus crisis, causing its pre-tax loss to rocket to £118.9m from £17.3m the previous year.

Andy Palmer ousted as Aston Martin chief executive

 

 

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.



More stories...

Motors Advert
Server 108