LONDON (ShareCast) - (Sharecast News) - Shares in Aston Martin Lagonda tanked on Wednesday as the luxury car maker announced plans to axe around 5% of its global workforce in a bid to cut costs, and reported a widening of its losses.
In results for the year to the end of December 2024, the car maker said it was kicking off a process "to make organisational adjustments, to ensure the business is appropriately resourced for its future plans".

This will mean the loss of around 170 employees, which it expects to lead to savings of around £25m, 50% of which will be realised in FY 2025.

The company said pre-tax losses widened to £289.1m from £239.8m the year before, with revenue down 3% to £1.58bn and wholesale volumes 9% lower at 6,030.

The car maker also said on Wednesday that it was delaying the launch of its first electric vehicle for the second time, to "the latter part of this decade". It had previously pushed back the launch to 2027.

Aston Martin struck an upbeat note on the outlook, however, saying it expects to make "significant" improvements across all key financial performance metrics in 2025. It expects to deliver positive adjusted EBIT in FY 2025 and free cash flow in the second half.

Chief executive 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. This line-up is further strengthened by the upcoming Valhalla, our first mid-engined hybrid supercar, with deliveries starting in H2 2025. Moving forward, my priority is to drive operational excellence and discipline as we continue our transformation into a sustainably profitable company."

At 1255 GMT, the shares were down 13% at 96p.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said: "While Aston Martin is more famously known for burning rubber on the tarmac, it's been much better at burning through cash in 2024. The group had to go cap in hand to investors twice last year, seeking additional funds to help keep the wheels turning. A further request for funds can't be ruled out given cash flows remain in negative territory.

"In an attempt to stem the financial bleeding, Aston Martin is set to sack 5% of its workforce. Letting go of these roughly 170 employees is expected to bring annual cost savings of around £25mn, half of which will be realised this year. But that's only part of the puzzle, as costs can only be cut so far. To get revenue moving in the right direction again, Aston Martin's hoping to stimulate demand for its ultra-luxury models through marketing and tailored initiatives. These high-end models tend to be more profitable, and it's hoped that growth in markets such as the USA and China can help fuel a return to profitability this year.

"While the company seems optimistic, investors should keep in mind that there are lots of potential potholes in the road ahead. On top of that, rumours are swirling that British car manufacturers could see President Trump impose a tariff of as high as 25% on their vehicles being imported to the US, which would likely hit Aston Martin hard."

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