Aston Martin to cut 20% of workforce, sell F1 branding rights amid tariff hit

Dubai: Aston Martin Lagonda said on Wednesday it will cut up to 20% of its workforce and has agreed to sell the branding rights to its Formula One team, as the British luxury carmaker grapples with mounting losses, US import tariffs and weak demand in China.

The job cuts, affecting about 600 roles from a workforce of roughly 3,000, are expected to deliver annualised cost savings of around £40 million ($54 million). The reductions include a 5% cut announced last year. The company did not give a precise timeline but said most of the savings would be realised in 2025.

Separately, Aston Martin last week struck a £50 million ($67.3 million) deal to sell the perpetual naming rights of the Aston Martin Formula One team to AMR GP Holdings, which operates the team. The company said the transaction would strengthen its liquidity position.

The deal requires shareholder approval as a related-party transaction involving chairman Lawrence Stroll, who indirectly controls AMR GP. Shareholders representing about 54% of the company, including Yew Tree Consortium, Geely and Mercedes-Benz, have given binding commitments to vote in favour.

Aston Martin has sought to shore up capital throughout the year, including a $162 million injection from Stroll and a deal in March to sell part of its stake in the Formula One team.

The carmaker said its net loss widened 52% last year to £493.2 million ($667 million), while operating losses reached £259.2 million. The company continues to face high debt of £1.38 billion and ongoing cash strain.

Chief executive Adrian Hallmark said the global luxury automotive market faced severe disruption from geopolitical tensions and macroeconomic pressure, pointing to higher tariffs in the United States and China.

Automakers have been among the sectors most affected by US President Donald Trump’s tariffs, aimed at encouraging domestic vehicle production.

Aston Martin limited shipments to the United States in April and May while awaiting a trade agreement between London and Washington. Exports resumed in June after tariffs on UK-made cars were reduced to 10% from 27.5%, subject to an annual cap of 100,000 vehicles.

The company said demand in China remained “extremely subdued”, reflecting broader weakness across the ultra-luxury segment in the world’s largest auto market.

It warned that uncertainty over further US tariffs, potential changes to China’s luxury car tax regime and reliance on global suppliers continued to weigh on the outlook.

Aston Martin has trimmed its five-year capital expenditure plan to £1.7 billion from £2 billion by delaying some electric vehicle investments.

The company expects further cash outflows in 2026 but forecast a “material improvement” in financial performance, supported by cost reductions and around 500 planned deliveries of its Valhalla hybrid supercar.

Shares rose nearly 5% in early London trading, ending a nine-session losing streak.