Aston Martin announced on Wednesday that it will reduce its global workforce by 20 percent, citing the impact of tariffs on its profitability. The British luxury automaker did not specify when the layoffs would occur but stated in a regulatory filing that the cuts are expected to generate annual savings of £40 million, or approximately $54 million.
The planned reductions follow an organizational review conducted last year, aimed at identifying measures to reinforce the company’s financial performance amid what it described as “a more challenging market backdrop.” The filing indicated that the review was part of broader efforts to improve operational efficiency and strengthen the bottom line.
Adrian Hallmark, who assumed the role of chief executive in September 2024, addressed the pressures facing the company. “An unprecedented backdrop of geopolitical uncertainties and macroeconomic pressures, including heightened tariffs in the U.S. and China, weighed on our performance and ability to execute our plans effectively,” he said in the filing.
Financially, Aston Martin’s position deteriorated further in 2025. The company reported a loss of £493 million for the year, a significant increase from the £324 million loss recorded in 2024. Headquartered in Gaydon, Warwickshire, the automaker employs roughly 3,000 people worldwide.
Investor reaction was muted but negative. Aston Martin’s shares declined by nearly 2 percent during trading on the London Stock Exchange on Wednesday.
The broader European automotive sector has faced mounting pressure since President Trump introduced 25 percent tariffs last year on automobiles and auto parts exported to the United States. In January, Volkswagen reported a 20 percent drop in U.S. sales during the final quarter of 2025, attributing the decline to tariffs and the removal of American electric vehicle incentives.
Aston Martin, along with Jaguar Land Rover, does not operate manufacturing facilities in the United States and instead exports vehicles to the American market.
Both companies temporarily suspended U.S. shipments last year while evaluating the effects of the tariffs. Jaguar Land Rover resumed exports after one month, whereas Aston Martin restarted shipments following a three-month halt.
Although the Supreme Court invalidated many of Mr. Trump’s tariffs last week, duties on imported automobiles, steel, and aluminum remain in effect, continuing to weigh on automakers that rely on exports to the U.S. market.
