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.
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