Aston Martin Lagonda has announced plans to cut up to 500 jobs as the luxury carmaker gears up for a turnaround plan aimed at restoring profitability amid plunging sales.
A Sky News report noted the company, which secured new investment earlier this year after struggling since a flotation in 2018, announced just over a week ago that it was replacing its chief executive under a new strategic plan.
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It said then that the COVID-19 crisis had exacerbated its sales woes, with the number of vehicles sold almost halving in the first three months of the year.
Astatement said the new strategy intended to deliver GBP10m in operating savings each year.
Aston Martin told Sky: "As communicated previously, the plan requires a fundamental reset which includes a planned reduction in front engined sports car production to rebalance supply to demand.
"The company's first SUV, DBX, remains on track for deliveries in the summer and has a strong order book."
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By GlobalDataThe automaker launched the GBP158,000 DBX last November.
"The measures announced today will right size the organisational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability," Aston Martin added.
