Just a week after Tobias Moers was confirmed as Aston's new CEO (taking over from Andy Palmer in August), the scale of the task is becoming apparent. As part of AML's plan to instigate a "fundamental reset" of the business, it's today been confirmed that up to 500 jobs could be lost.
In a release detailing "actions on costs to deliver the strategic plan", Aston states that a reduction in front-engined sports car production is to blame; with fewer cars needing to be built as the firm seeks to better match supply with demand, less staff will be needed to make them. It's also suggested that "improved productivity" across the business has contributed to the need forreduced numbers.
A consultation process with employees will begin in the next few days, alongside a reduction in non-critical expenditure throughout the business. The objective is ambitious, if also of tremendous urgency: another £10m of cost savings (in addition to those announced at the end of January), £10m less of capital expenditure and around £8m reduction in manufacturing costs.
That's the bad news, to be blunt. The good news is that the DBX will commence production this summer, with a good chunk of orders and favourable reception thus far. We knew the launch of that car was going to be important from the get-go; now it looks little short of absolutely critical for the success of Aston Martin. Hopefully the long-awaited SUV, along with these right-sizing organisational structures, will be what's required to get Aston Martin back on an even keel. 2020 could well be an even longer and more difficult year than anticipated.
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