Aston Martin has unveiled a £10million cost-saving initiative which will result in around 500 jobs being axed.
The luxury British carmaker’s financial struggles have been very well documented in recent times and its very low share price enabled Canadian billionaire and Racing Point owner Lawrence Stroll to head a consortium which acquired a 25% stake in the company.
As part of Stroll’s investment, Racing Point will become Aston Martin ahead of the next Formula 1 season and return as fully fledged works team for the first time in over 60 years.
But, like McLaren Group and Renault have also recently announced, job cuts are going to have to be made in order to make the company more sustainable and financially stable in the long term.
Aston Martin’s statement said: “As communicated previously, the plan requires a fundamental reset which includes a planned reduction in front-engined sports car production to rebalance supply to demand.”
The carmaker reported a £119million loss in Q1 with revenues declining by 60% to £79million. Vehicle sales dropped by 45% to 578.
There has also been a recent changing of the guard at Aston Martin with Stroll officially confirmed as the executive chairman and Andy Palmer being replaced as CEO by outgoing Mercedes-AMG boss Tobias Moers.