EuroWire, WARWICKSHIRE: Aston Martin Lagonda Global Holdings Plc said on Feb. 25, 2026, it will cut up to 20% of its workforce as part of a programme aimed at reducing costs and reshaping spending. The company said the moves are linked to a review of operating expenditure and capital expenditure following a volatile trading backdrop. Aston Martin said it expects associated annualised operating expenditure and capex savings of about £40 million, with most of the savings expected to be realised in the 2026 financial year. It said the programme is expected to carry transformation cash costs of about £15 million.
The company said the workforce reduction follows organisational adjustments announced early in 2025 that ultimately led to the departure of around 100 employees. Aston Martin said an Oct. 6, 2025, trading update highlighted uncertainty tied to U.S. tariffs and the implementation of a quota mechanism, changes to China’s ultra-luxury car taxes and a higher risk of supply chain pressures. It said a further global consultation process was launched on proposals to reduce the workforce by up to 20%. Aston Martin said it recognised a £18.7 million provision for incurred and expected restructuring costs in 2025.
Aston Martin reported total wholesale volumes of 5,448 vehicles in 2025, down 10% from 6,030 a year earlier, and revenue of £1.26 billion, down 21%. Gross profit fell 37% to £369.8 million and gross margin declined to 29.4% from 36.9%. The company posted an operating loss of £259.2 million, compared with an operating loss of £99.5 million in 2024, and a loss before tax of £363.9 million. It reported free cash outflow of £409.9 million, net debt of £1.38 billion and year-end liquidity of £250.3 million.
Capital spending and restructuring costs
Aston Martin said its five-year capex plan from 2026 has been reduced to about £1.7 billion from about £2.0 billion previously, reflecting a shift in the timing of investment into its future electric vehicle platform. The company said a review of the future product cycle plan led to revised capital expenditure targets designed to deliver lower overall spending over the coming five-year period. It said specific vehicle programmes with previously capitalised development spend were discontinued, resulting in an impairment of £42.7 million of capitalised development costs with no cash impact. The company said restructuring costs recognised in 2025 included £5.2 million already realised, with £13.5 million expected to be settled in 2026.
Aston Martin said 2025 performance was affected by trade barriers and geopolitical friction, alongside fewer high-margin “Special” deliveries than in the prior year. The company reported total average selling price of £209,000, down from £245,000, while core average selling price increased 5% to £185,000. It said improved cash collections in the fourth quarter resulted in modest positive free cash flow in the quarter and helped underpin year-end liquidity. Aston Martin said it took actions during 2025 to reduce selling, general and administrative costs and capex, partially offsetting external challenges.
Valhalla deliveries and liquidity actions
The company said the start of Valhalla deliveries in the fourth quarter of 2025 marked the launch of its first mid-engined plug-in hybrid supercar. Aston Martin said the first 152 Valhalla units were wholesaled in 2025 and it expects about 500 deliveries in the 2026 financial year. It said deliveries of seven new models or derivatives began during 2025, including additions across its core range, and noted that customer personalisation continued to contribute about 18% of core revenue. The company said its model activity during the year included new high-performance derivatives and expanded convertible offerings across its core sports car line-up.
Aston Martin said year-end liquidity of £250 million is expected to be further enhanced by the proposed sale of the Aston Martin naming rights to AMR GP for a consideration of £50 million in the first quarter of 2026. The company is listed on the London Stock Exchange and said it expects a material improvement in financial performance in 2026 driven by an enhanced product mix and benefits from its ongoing transformation programme. It reiterated that most of the £40 million annualised savings tied to the workforce programme are expected to be realised in the 2026 financial year. Shares were up about 5% in early London trading following the announcement – By Content Syndication Services.