British luxury car manufacturer Aston Martin on Wednesday revealed plans to reduce its workforce by up to 20 per cent following a sharp increase in annual losses, driven by US tariffs and subdued demand in China.
The redundancies will affect around 600 roles, with the company currently employing approximately 3,000 staff.
Aston Martin, which has faced financial difficulties for several years, stated that its net loss rose by 52 per cent last year to £493.2 million ($667 million) compared with 2024.
“In 2025, the global luxury automotive market faced one of its most turbulent years in recent times,” group chief executive Adrian Hallmark said in a statement.
“Consumer demand was impacted by escalating geopolitical uncertainties and macroeconomic challenges, the most notable being the introduction of increased tariffs in both the United States and China.”
Car manufacturers have been among the sectors most severely affected by President Trump’s wave of tariffs, introduced as part of efforts to restore vehicle production to the United States.
Aston Martin scaled back exports to the United States in April and May while awaiting the outcome of trade negotiations between London and Washington.
Shipments resumed in June after the agreement reduced tariffs on UK car exports to 10 per cent from 27.5 per cent, subject to an annual cap of 100,000 vehicles.
The company cautioned that the outlook for the automotive sector “remains challenging” amid “uncertainties over the economic impact from the unpredictable threat or introduction of additional US tariffs, changes to China’s ultra-luxury car taxes and the continued reliance on a stable network of global suppliers”.
It further noted that “while China remains a market with long-term growth potential, demand there remained extremely subdued in line with other luxury automotive peers”.