Aston Martin and Bentley to axe 1,500 jobs

Aston Martin
Aston Martin

Two of Britain’s most famous luxury car brands are set to cut up to 1,500 jobs.

Bentley Motors is seeking to lay off up to 1,000 staff - almost a quarter of its workforce -  through a voluntary redundancy programme in return for a severance payment.

Aston Martin, meanwhile, is preparing to axe 500 jobs as the carmaker restructures under its new management.

Billionaire executive chairman Lawrence Stroll said that the firm has no choice but to cut a fifth of its workforce as part of a “fundamental reset” aimed at staying afloat.

Aston last month reported a £119m first-quarter loss, worse than the £17m loss a year ago,  as revenue plunged 60pc to £79m. Sales during the quarter fell 45pc to 578 vehicles.

The company said that cutting staff numbers from their current level of 2,565 will help it return to profit following a drop in sports car production triggered largely by the coronavirus crisis.

Formula One enthusiast Mr Stroll took charge of the firm earlier this year after a leading consortium that injected £500m into the company in return for a 25pc stake. Last month the firm ousted chief executive Andy Palmer as part of the battle to reinvent itself.
Aston is pinning its future on the new DBX, its first SUV, which it has committed hundreds of millions into producing, including building a new factory in Wales.

Aston Martin DBX - Greg Baker/AFP
Aston Martin DBX - Greg Baker/AFP

Orders for the £158,000 DBX have been strong, bosses said, and the vehicle remains on track for deliveries to start this summer.

Mr Stroll’s plans for the company also include shelving Mr Palmer’s plans for an electric vehicle that would have revived the company's Lagonda brand. He will also move the company into F1 racing in 2021.

Aston has been struggling since it floated in the late 2018, without what many saw as a revved up price of £19 per share.

The stock collapsed as Aston issued a string of profiting warnings and sales downgrades, and had to take on expensive debt to remain afloat before Mr Stroll’s consortium stepped in.

It is the second British sports carmaker to reveal major job losses in a fortnight, after rival McLaren vowed to shed 1,200 of its 4,500 staff after coronavirus reduced demand.

Meanwhile, car dealer Lookers said it would axe 1,500 staff to cut costs to "sustain and protect the business over the long term".

The firm said the restructuring could lead to annual payroll savings of £50m, while it will cost about £9m to deliver.

Lookers will close 12 dealerships in the second half of the year, bringing its total down to 136.

Shares rose 4.6pc in morning trading.

It comes as a fraud investigation into the car dealer by Grant Thornton is nearing a conclusion.

Lookers said: "The initial findings of the investigation have highlighted areas where financial controls require strengthening to prevent a repetition of such accounting irregularities in the future.

"In addition, the investigation has highlighted the need for Lookers to further strengthen some behavioural and cultural aspects relating to its control environment. Robust remediation activity is in progress."