British manufacturer Aston Martin will cut 5% of its workforce with 170 jobs set to be axed as part of a major cost-cutting plan. 

The news comes after the popular brand reported pre-tax losses had widened by a further 21% to £289million in 2024. 

Reports suggest the brand’s debt pile has now increased by 43% to hit an eye-watering £1.16billion. 

The firm is hoping to secure annual savings of at least £25million. 

Aston Martin expects they will reach around half of that target this year with job losses part of the equation. 

Speaking on Wednesday, Aston Martin said the company would ensure it is "appropriately resourced for its future plans".

They accepted that job cuts were a “difficult but necessary action” in light of the financial news. 

It comes after Aston Martin’s wholesale volumes fell 9% in 2024 to just 6,030 cars.

Aston Martin CEO Adrian Hallmark explained: "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," 

The news had a dent on Aston Martin’s share price which dropped 0.54 per cent to hit 109.60p. 

A statement read: “Aston Martin expects to make significant improvements across all key financial performance metrics in 2025, compared to the prior year.”

The Gaydon-based manufacturer has also confirmed the brand’s first battery electric car has been delayed once again. 

Instead, the brand confirmed they would focus their attention on the Valhalla, a mid-engined plug-in hybrid. 

Aston Martin’s new electric car was previously pushed back to 2026 but is now expected to hit the road in the later part of the decade. 

Aston Martin boss Lawence Strill has previously warned the company had no intention of turning its back on petrol and diesel vehicles any time soon.

He previously said electric vehicles were a "distant future” with customers more interested in hybrid vehicles than full electric. 

He explained: “If I had to guess, I’d tell you, combustion engines will certainly, in my mind, maybe with hybrid, certainly go till 2035 at least. It's my personal feeling."