British luxury carmaker Aston Martin has announced plans to cut up to 20% of its workforce as it grapples with the impact of US import tariffs and weak demand in China.
The company currently employs around 3,000 people, meaning the job cuts could affect up to 600 employees. Aston Martin said the move is expected to generate annual savings of about £40 million (approximately $54 million), Reuters reported.
While the company did not specify when the layoffs will take place, it reportedly said most of the savings are expected to be realised this year. The planned reduction includes a 5% workforce cut that was announced last year.
3 February 2026
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In addition, Aston Martin has reduced its five-year capital spending plan to £1.7 billion from £2 billion. The cutback will come from delaying investments in electric vehicle (EV) technology.
The carmaker has been facing financial strain, struggling to generate sufficient cash while managing debt of £1.38 billion. It has received financial support from Canadian billionaire and Chairman Lawrence Stroll, along with other capital-raising deals.
Aston Martin said US tariffs have been "extremely disruptive", while demand in China, the world’s largest auto market, has been "extremely subdued."
The development follows similar cost-cutting measures by its rival Porsche. The German carmaker in February last year announced plans to cut around 1,900 jobs by 2029.
Porsche, part of the Volkswagen Group, has also been hit by slow EV demand, US tariffs, and declining sales in China, where deliveries fell nearly 26% in the first nine months of 2025, multiple reports stated.
According to an earlier report by Bloomberg, a memo from then-CEO Oliver Blume indicated the workforce reduction process would begin in the second half of 2025.
Later in the year, there were other reports suggesting that Porsche was in talks to reduce around 23,000 roles in and around its headquarters in Stuttgart, out of more than 35,000 employees in Germany.
