A restructuring programme will see Aston Martin cull as many as 295 jobs (14 per cent of its total workforce) as the company seeks to get its head above water.
The company said that the job cuts will be meaningful as they are earning much less than they are spending. Aston Martin revealed in a statement that its sales target is intact and that the job cuts will mostly affect its non-production staff.
The company also revealed that it intends to minimise the impact of the job cuts by indulging in a collective consultation with employee representatives, including Unite union, which it has already begun. Aston Martin spokesperson added that the company intends to offer its employees the option of either opting for early retirement and voluntary redundancies; not recruiting current open positions and other similar tactics.
According to recently released figures, Aston Martin has posted a pretax loss of £25.4 million in 2013. Earlier, the company’s former chief financial officer had told Reuters in an interview that the company won’t be able to register profits until after 2016.
The company added that it will continue developing and designing cars for the future and the company’s plans of launching electric cars were teased by Palmer at Bloomberg New Energy Finance Conference. He said that Aston is a V-12 engine company and that it intends to do something radical.
“Electric power gives you that power. It gives you that torque”, Palmer said at the conference.