Aston Martin has revealed that it is set to cut 5% of its workforce as it focuses on its "disciplined operational execution, continued business transformation and cost optimisation".

In the year to 31 December 2024, the luxury car manufacturer’s revenue fell by 3% in 2024 to £1.6bn, while its gross profit dropped by 9% to £583.9m.

In this time, its adjusted EBITDA dropped by 11% to £271m, while its net debt increased by 43% to £1.2bn, which Aston Martin said reflects "higher gross debt" following financing activities in the 2024 financial year.

Chief executive officer at Aston Martin, Adrian Hallmark, said: "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. 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.

"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. Moving forward, my priority is to drive operational excellence and discipline as we continue our transformation into a sustainably profitable company."

Looking ahead, the firm said that it had begun to make progress on its operating expenses in the 2024 financial year and it now needs to optimise the organisation to "deliver the current business plan, with a focus on maximising the value of each vehicle sold".

As a result, it said that with "greater operational discipline, focused spend and rightsizing", it is set to cut 5% of its global workforce, the equivalent to 170 jobs, and this is expected to reduce operating expenditure by around £25m.

Aston Martin added that its "material financial performance improvement in 2025" is expected to "deliver positive adjusted EBIT" and free cash flow in the second half of the year, while its mid-term targets are unchanged.

Investment director at AJ Bell, Russ Mould, said that while the latest results won’t get investors "blasting out celebratory music", its positive cash flow "might give the company enough juice in the tank" while it works on its recovery plan.

He concluded: "The company has faced a series of speed bumps since joining the market in 2018 – making a mockery of comparisons with Ferrari at the time of its listing.

"This has left it in the last-chance saloon with long suffering shareholders. Hallmark’s suggestion that a period of new product launches is over and the company can now focus on delivery needs to be borne out by the performance in 2025.

"US tariffs are a potential threat in the months ahead and the company needs to stoke demand for its more profitable high-end models. Aston Martin is engaged in a round of cost cutting, but it will need more than ‘efficiencies’ if it is to get its share price motoring again."

---