Aston Martin Looking To Cut 500 Jobs Because Sports Cars Aren't Selling

To save costs, the British company is cutting a fifth of its workforce and dialling back sports car production to meet lower demand
Aston Martin Looking To Cut 500 Jobs Because Sports Cars Aren't Selling

Even before Coronavirus caused a huge downturn in car sales, all was not well at Aston Martin. Demand for its sports cars has taken a big hit of late, thanks in large part to China’s economic downturn.

In response, Aston Martin is cutting back on sports car production to suit, and that’ll likely involve the loss of 500 jobs - around a fifth of its total workforce. All told the company - which earlier this year received a cash boost via investment from billionaire Lawrence Stroll - is looking to save nearly £30 million through various new measures.

Aston Martin Looking To Cut 500 Jobs Because Sports Cars Aren't Selling

In a statement, Aston Martin said, “the plan requires a fundamental reset which includes a planned reduction in front-engined sports car production to rebalance supply to demand,” but on a more positive noted that, “The company’s first SUV, DBX, remains on track for deliveries in the summer and has a strong order book”.

“The measures announced today will right-size the organisational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability,” AM concluded.

Aston Martin Looking To Cut 500 Jobs Because Sports Cars Aren't Selling

Among the shake-ups triggered by Stroll’s involvement is a change at the top - Andy Palmer, CEO of Aston Martin since 2014, stepped down last month. The former Nissan boss oversaw the wholesale replacement of the firm’s dated line-up during his tenure, making his seemingly enforced departure a surprise for many, despite the company’s present issues.

Gaydon will be in safe hands, however, with Mercedes-AMG chief Tobias Moers picking up the Astons reins from 1 August.

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Comments

Robert Gracie

Its never fun when any company has to cut jobs….especially in times like this…

06/04/2020 - 11:36 |
8 | 0
Anonymous

This is predictable. All companies highs and lows are reducing their staffs while still keeping good ol’ directors and CEOs afloat in this troubled times. Ahh the taste of capitalism at work here. 🙈

06/04/2020 - 11:44 |
2 | 8
BL4CKF0X

In reply to by Anonymous (not verified)

If I’m looking at communist country sports cars, capitalist sports cars are still better.

06/04/2020 - 11:55 |
12 | 1
Anonymous

In reply to by Anonymous (not verified)

Yeah let’s fire all the directors and the goddam ceo cuz a company is gonna run with only factory workers right?

06/04/2020 - 17:39 |
5 | 1
Anonymous

Goddammit people, start buying sports cars instead of SUVs again!

06/04/2020 - 14:37 |
11 | 1
Robert Gracie

In reply to by Anonymous (not verified)

I agree with that without a doubt, we need more Sportscars out there than SUVs!

06/05/2020 - 08:58 |
0 | 0