Aston Martin Lagonda Global Holdings Plc is set to cut up to 20% of its approximately 3,000 workforce, expecting savings of about £40 million ($54 million) with related costs of around £15 million. This follows deeper cuts than a year ago when the luxury carmaker aimed to reduce staff by 5%. The company anticipates another year of cash outflow, primarily due to the impact of US tariffs, which are complicating its turnaround efforts. They will announce financial results for the first half of 2026 on July 29.
In response to its financial difficulties, Aston Martin has initiated a cost-cutting program that includes reviewing future model plans and delaying some investments in electric vehicle development. The company has also secured new financing totaling £550 million. This package comprises a secured loan of £450 million from funds managed by BlackRock-owned HPS Investment Partners and an additional £100 million loan, plus an extra borrowing facility of up to £100 million.
CFO Doug Lafferty stated that this funding would strengthen Aston Martin's balance sheet, increase financial flexibility, and support the development of future models, thereby enhancing the company's resilience. These measures, along with the sale of special edition models, are expected to improve profit margins and cash flow. Despite these efforts, Aston Martin's shares have fallen by approximately 44% since the beginning of the year, as the brand continues to grapple with declining sales, US tariffs, and weaker demand in the Chinese market.
