Gaydon-based carmaker Aston Martin announces plan for 500 job cuts
Aston Martin Lagonda Global issued a statement today, Thursday June 4, about the announcement, which said it will 'shortly launch a consultation process on proposals to reduce employee numbers by up to 500.'
Car sales showrooms reopened across the UK on Monday June 1 after the government lifted coronavirus lockdown restrictions. But the impact of the coronavirus on the economy is still unfolding.
The Aston Martin statement said the redundancies come as part of a plan that requires a fundamental reset, which includes a planned reduction in front-engined sports car production to rebalance supply to demand.
A spokesperson for the company said they could not confirm the number of people affected at Gaydon.
The spokesperson added: "As mentioned in the statement, the reset plan includes a planned reduction in front-engined sports car production – it will inevitably have an impact." They added the consultation process on the job redundancies would likely commence in the coming days, with the redundancies taking place in the late summer.
The measures announced today, Thursday June 4, will 'right-size' the organisational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability.
The Company’s first SUV, DBX, remains on track for deliveries in the summer.
Aston Martin continues to take decisive action in other areas to reduce cost and remove non-critical expenditure from the business at every level including in areas such as contractor numbers, site footprint, marketing and travel.
The restructuring is expected to deliver the following on an annual basis:
- Incremental operating cost savings of c.£10m (in addition to the c.£10m announced on January 31)
- Reduced direct manufacturing costs in line with volumes (c.£8m)
- Reduced capital expenditure (c.£10m).
- The associated cash restructuring costs are expected to be c.£12m in 2020.