Aston Martin Announces Job Cuts and Postpones First Fully Electric Car

Aston Martin is cutting 5% of its workforce and delaying its first fully electric vehicle until the end of the decade due to weak demand and financial struggles. Learn more about the challenges.

Luxury carmaker Aston Martin is facing significant challenges, announcing a 5% workforce reduction and another delay in the release of its first fully electric vehicle. Economic difficulties, uncertain consumer demand for EVs, and the need for cost optimization are driving these decisions.

The company plans to lay off approximately 170 employees worldwide, with these cuts expected to save around £25 million ($31.6 million). However, financial struggles run deeper—Aston Martin reported an adjusted pre-tax loss of £255.5 million for 2024, a substantial increase from the previous year.

The transition to EVs is proving more complex than expected. Aston Martin initially planned to launch its first fully electric model in 2026, but that timeline has now been pushed back to the end of the decade. The primary reason? Weak consumer demand, prompting the automaker to focus on hybrid technology instead. Its next major launch will be the Valhalla hybrid sports car, set to reach customers in the second half of 2025.

Aston Martin is not alone in struggling with the EV transition. Porsche has also announced 1,900 job cuts in Germany, BMW has frozen investments in its Mini EV plant, and Bentley has pushed back its full shift to electric vehicles from 2030 to 2035. Even Mercedes-Benz, typically strong in the premium segment, is forecasting slower profit growth and potential tariff increases in the US.

Meanwhile, the Chinese auto market—the largest in the world—is undergoing a major transformation. Domestic brands like BYD and Xiaomi are outpacing Western competitors by offering more technologically advanced and affordable EVs. In 2025, EV sales in China are projected to surpass internal combustion engine (ICE) vehicle sales for the first time. With this competitive landscape shifting, European automakers must rethink their strategies to maintain their foothold.

Aston Martin is betting on cost-cutting and hybrid technology, but whether that will be enough to keep the company afloat remains uncertain. One thing is clear: the luxury car industry is undergoing a profound shift, and those who fail to adapt quickly may struggle to survive.

Source: electrek.co