Iconic British car maker Aston Martin is set to cut around 600 jobs after being hit by Donald Trump’s trade tariffs and a sharp slowdown in China. The luxury manufacturer, best known for its links to James Bond, confirmed it will reduce its workforce by around one-fifth as it battles mounting financial pressures.The job cuts follow the car brand reporting its full year results for 2025, which revealed that net losses surged by 52 per cent to £493.2million, underlining the scale of the challenges facing the struggling British brand. Bosses blamed much of the downturn on the impact of American trade tariffs introduced under President Donald Trump, describing the measures as “extremely disruptive”.
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Last April, President Donald Trump announced a 25 per cent tariff on the import of foreign vehicles, with the UK able to benefit from a reduced rate of 10 per cent.But the trade deal has a cap of 100,000 vehicles imported from the UK to the US, with any vehicles over the cap facing an effective tariff rate of 27.5 per cent. Many UK car brands were affected by these measures, with Aston Martin warning in October that its profits would be hit.In the latest annual report, the UK car giant warned that demand in China, the world’s largest car market, has been “extremely subdued” throughout the year. Aston Martin employs around 3,000 people, most of them in the UK. Its headquarters are in Warwickshire, with a major manufacturing plant in St Athan, South Wales.The company said the job cuts are expected to save around £40million a year, with most of the reductions likely to take place during the current financial year.In a statement, the carmaker said: “Having undertaken, at the start of 2025, a process to make organisational adjustments to ensure the business was appropriately resourced for its future plans.”We had to take the difficult decision at the end of 2025 to implement further changes. This latest programme will ultimately see the departure of up to 20 per cent of our valued workforce.”The financial figures paint a stark picture. Operating losses widened to £259.2million in 2025, compared with £99.5million the previous year.Revenue dropped 21 per cent to £1.26billion as fewer cars were delivered to dealers and sales of high-margin special edition models fell.LATEST DEVELOPMENTSDrivers urged to save £500 through new Labour scheme to slash cost of electric car home chargersElectric car batteries last longer than expected as millions prepare to ditch petrol and diesel vehiclesCar tax hikes to launch within weeks as Rachel Reeves hits drivers with massive £5,690 chargeProfit margins were also squeezed with gross margins falling sharply from 36.9 per cent to 29.4 per cent. The company said higher tariffs in both the US and China, along with rising warranty costs and extra support for dealers, had eaten into earnings.Net debt climbed to £1.38billion by the end of December, up from £1.16billion a year earlier, as the business continued to struggle with cash flow and heavy borrowing.Chief executive Adrian Hallmark admitted 2025 had been one of the toughest years in the firm’s history. He said the company had faced an “unprecedented backdrop of geopolitical uncertainties and macroeconomic pressures,” pointing directly to heightened tariffs in the US and China as key factors weighing on performance. Despite the setbacks, Mr Hallmark insisted progress had been made in reshaping the business. He said Aston Martin had continued investing in quality improvements while also taking steps to cut costs and improve efficiency.As part of its efforts to stabilise finances, the company has trimmed its five-year investment plan from £2billion to £1.7billion, delaying some spending on electric vehicle technology.But there are hopes that new models could help turn fortunes around. The firm expects to deliver around 500 units of its Valhalla hybrid supercar this year, more than three times the 152 vehicles shipped in the final quarter of 2025.The carmaker also recently agreed to sell the perpetual branding rights for its Formula One team to AMR GP Holdings for £50million in cash, boosting its liquidity. Mr Hallmark added: “Looking ahead, I remain confident that our strategy and upcoming products will position us strongly for future success. “In FY 2026, we expect to deliver a material improvement in financial performance and continue delivering year-on-year improvements over the short-mid-term with a focus on margin expansion and cash flow generation.”
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