Luxury carmaker Aston Martin is planning to cut 170 jobs in a bid to drive down costs and turnaround a struggling share price.
The plans involve axeing five per cent of its global workforce, which it estimates will save around £25m.
It came as Aston Martin reported wider full-year losses of £289.1m and a three per cent drop in revenue, to £1.58bn.
In recent years, the marque has grappled with a string of supply chain and production issues, which have fuelled an ever-widening debt pile.
Debts soared by 43 per cent to £1.16bn in 2024, with shares falling around a third. Free cash outflows widened nine per cent in the same period, to £392m.
“After a period of intense product launches, coupled with industry-wide and company challenges, our focus now shifts to operational execution and delivering financial sustainability,” the firm’s new chief executive Adrian Hallmark said in a statement.
“I see great potential in Aston Martin, and our goal is to transition from a high-potential business to a high-performing one, better equipped to navigate future opportunities and uncertainties.
He added: “We have all the vital ingredients for success, with the support of strategic shareholders, the capability of world-class technical partners, a revitalised brand, talented people, and the strongest product portfolio in our 112-year history.
But Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: “The group had to go cap in hand to investors twice last year, seeking additional funds to help keep the wheels turning.
“A further request for funds can’t be ruled out given cash flows remain in negative territory.”
Chiekrie added the workforce cull was only “part of the puzzle, as costs can only be cut so far.
“To get revenue moving in the right direction again, Aston Martin’s hoping to stimulate demand for its ultra-luxury models through marketing and tailored initiatives.”