Aston Martin has announced it’s cutting 500 jobs, or around 20 per cent of its workforce.
The company has cited lower than expected production volumes and improved productivity across the business as the reason for the cuts, according to a report by Reuters.
In addition to cutting jobs, Aston Martin will also find savings by reducing the number of contractors, its site footprint, and by cutting its marketing and travel budgets.
This restructuring is expected to save the company around £38 million (A$68.9 million) each year, though restructuring costs are expected to be around £12 million (A$21.8 million).
Though the financial situation at Aston Martin is gloomy – the company posted an A$226 million loss in Q1 and its share prices have tanked – there’s some hope on the horizon.
Aston Martin’s reopened its St Athan factory in Wales which is producing the DBX SUV, a crucial product for the brand that’s expected to attract new buyers including more women. Deliveries will start mid-year.
Last week, Aston Martin announced it was appointing former Mercedes-AMG boss Tobias Moers as its new CEO, replacing Andy Palmer.
He’s coming on board from August 1.