Aston Martin Now Has Over $1 Billion in Debt and Is Cutting Jobs

Aston Martin recently delayed its first electric vehicle amid weakening EV demand. But that delay may have also hinted at some money troubles underneath the surface, as Aston revealed this week that it’s now over $1 billion in debt and needs to cut jobs.

The cuts amount to 170 jobs, or around 5 percent of Aston Martin’s workforce, according to Reuters. The company lost $322 million last year, it said this week, and its debt was around $1.4 billion, with the challenges ahead including weaker sales in China and potential tariffs. Aston’s stock price was down about 11 percent on Thursday after the news.

The English automaker has been very busy with new cars in recent years, unveiling a new Vantage last year, a new Vanquish, and, in 2023, the DB12. Aston also recently launched the DBX707, a high-powered version of Aston’s first SUV. The brand said it is now planning a slower pace for new cars.

“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,” Aston Martin CEO Adrian Hallmark said in a statement. “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.”

Aston is no stranger to financial turmoil. It has gone bankrupt seven times in its 112-year existence, buffeted repeatedly by waxing and waning demand for its cars. That volatility underscores the struggle for automakers to persist as businesses, even ones that James Bond made famous. In recent years, Aston has also been taking its participation in Formula 1 more seriously, which has required a substantial financial investment from the brand. It’s the kind of ambition executive chairman Lawrence Stroll brought to the company when he took control in 2020. Whether it will pay off with financial dividends remains to be seen. For now, Stroll says the brand’s strategy will stay the same.

“Our focus remains on the continued execution of our brand and product strategy, in addition to greater operational rigor, which will underpin progress towards our near- and medium-term financial targets, creating value for all our stakeholders,” he said.

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