Aston Martin will lay off 500 workers due to production cutsJune 4, 2020
The British company proposes to increase profitability by reducing the level of production of sports cars.
Aston Martin plans to cut up to 500 jobs from 2,600 employees as part of a £ 10 million cost-cutting program after the crisis caused by the coronavirus pandemic.
The British car manufacturer, which is struggling with difficulties, says the planned job cuts are designed to increase profitability by bringing its cost into line with reduced production of sports car lines. This is part of the plan recently outlined by Aston Martin, which, he said, will allow him to ensure profitable growth.
Aston said the strategic plan requires a “fundamental reset that includes a planned reduction in the production of front-engined sports cars to balance supply and demand.”
Aston Martin will launch a consultation process with workers and unions about job cuts, which, he said, is part of a series of “decisive” actions taken to reduce costs and expenses.
These include a savings of around £ 10 million in operating costs in addition to the £ 10 million previously announced savings. He also plans to reduce production costs by £ 8 million and capital expenditures by £ 10 million, and the corresponding cash restructuring costs this year will be £ 12 million.
In the first three months of 2020, Aston Martin recorded a pre-tax loss of GBP 118.9 million, and sales and production were affected by the coronavirus pandemic. The company is gearing up for the release of the most important DBX SUV this year, and has recently appointed Mercedes-AMG CEO Tobias Moers as its new CEO, replacing Andy Palmer.
Meanwhile, regulatory documents recently revealed that Aston Martin’s second-largest shareholder, Investment Industrial Advisors Ltd, has reduced its stake in the company. In the application, the company indicated a 14.99% stake in the British automaker compared with the previous share of 19.92%.
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