Aston Martin is going to cut up to 500 jobs as part of its cost-cutting plan, in a bid to bring its cost base into line with its reduced production levels.
The British carmaker announced the job cuts one week after they appointed Mercedes AMG boss Tobias Moers as their new CEO, who will assume his new position on August 1, replacing Andy Palmer.
Aston Martin will begin consulting with trade unions and employees over the job cuts, which it says are necessary due to the lower than the originally planned production numbers and to improve productivity across its business.
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“The measures announced today will right-size the organizational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability,” Aston Martin said in its announcement.
Aston Martin’s restructuring plan includes a previously announced “reduction in front-engined sports car production to rebalance supply to demand” but added that the DBX, the carmaker’s first SUV and a key model for the brand’s future, remains on track for first deliveries to commence this summer and has a strong order book.
The recent wave of cost-cutting measures will expand into other areas as well, including non-critical expenditure such as contractor numbers, site footprint, marketing, and travel. The British carmaker said it expects to save around $48 million (£38 million) on an annual basis with its restructuring plan.
