Thursday, February 26, 2026 - British luxury carmaker Aston Martin has announced plans to cut up to 20 percent of its workforce after reporting widened annual losses linked to US tariffs and weak demand in China.
The job cuts will affect around 600 employees out of the
company’s roughly 3,000-strong workforce. In a statement released on Wednesday,
February 25, the automaker said its net loss surged 52 percent last year to
£493.2 million ($667 million) compared with the previous year.
Group chief executive Adrian Hallmark said the luxury
automotive sector had faced significant headwinds. “In 2025, the global luxury
automotive market faced one of its most turbulent years in recent times,” he
said.
“Consumer demand was impacted by escalating geopolitical
uncertainties and macroeconomic challenges, the most notable being the
introduction of increased tariffs in both the United States and China,”
Hallmark added.
Automakers have been among the hardest hit by tariff
measures introduced by former US President Donald Trump as part of efforts to
boost domestic car production.
Aston Martin limited exports to the United States in April
and May while awaiting a trade agreement between London and Washington.
Shipments resumed in June after a deal reduced tariffs on UK car exports to 10
percent from 27.5 percent, subject to a cap of 100,000 vehicles per year.
Despite the easing of some trade barriers, the company
warned that the outlook remains difficult. It cited “uncertainties over the
economic impact from the unpredictable threat or introduction of additional US
tariffs, changes to China’s ultra-luxury car taxes and the continued reliance
on a stable network of global suppliers.”
While describing China as a market with long-term growth
potential, Aston Martin said demand there remained “extremely subdued,”
reflecting a broader slowdown across the luxury automotive sector.
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