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Aston Martin to axe 500 jobs in widespread cost-cutting programme

Production of front-engined sports cars is being reduced to a level which will restore profitability

Aston Martin Lagonda Global Holdings PLC -
The new DBX is on schedule said the car maker

Aston Martin Lagonda Global Holdings PLC (LON:AML) has announced it is cutting 500 jobs as part of what it says is a fundamental reset of the luxury carmaker.

Production of front-engined sports cars is being reduced to a level which will restore profitability, it said.

Action on costs is being taken all across the business, the group added, including contractor numbers, premises and marketing and travel.

On an annual basis, the restructuring is expected to save an additional £10mln,  on top of £10mln announced previously, and lower manufacturing costs by £8mln while capital expenditure is being cut by £10mln.

The restructuring will cost £12mln, which will be charged to the 2020 accounts.

Aston Martin has had a tough time since it listed in late 2018, with the business shedding 94% of its market value, culminating in a recent £536mln rescue led by F1 magnate Lawrence Stroll.

The Canadian billionaire has re-shaped the board since he took over and last week Tobias Moers, from Mercedes-AMG, was appointed as chief executive to replace Andy Palmer.

Chairwoman Penny Hughes and finance chief Mark Wilson departed in April and three non-executives have just finished their notice period.

Analysts have said a recovery by the carmaker hinges on the performance of its first SUV, the DBX.

In today’s statement, Aston Martin said the DBX remains on track for deliveries in the summer and has a strong order book.

Quick facts: Aston Martin Lagonda Global Holdings PLC

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