Bentley and Aston Martin cutting jobs as coronavirus derails luxury car market

The 2020 Bentley Continental GT First Edition

Mack Hogan | CNBC

Famed British luxury carmakers Bentley and Aston Martin aren’t proof against the influence the coronavirus pandemic is having on the worldwide financial system and automotive trade.

Both corporations this week introduced vital job cuts to cut back prices attributable to weakening demand for his or her autos. 

Volkswagen-owned Bentley mentioned Friday that it plans to get rid of as much as 1,000 jobs, practically 1 / 4 of its workforce, by a “voluntary release” program as its enterprise plans have been “clearly derailed by the impact of the pandemic.”

“With this considerable forecast reduction to future revenues, Bentley has hastened plans carrying out a comprehensive review of its cost and investment structure – and as the last resort, as with any organisation, the people costs and structure,” the corporate mentioned in a launch.

The coronavirus pandemic additionally delayed Bentley’s plans to element a restructuring plan known as “Beyond100.” The program, based on the corporate, is designed to organize the century-old automaker for “the next 100 years.”

Aston Martin DBX

Source: Aston Martin

Bentley’s cuts come a day after fellow British automaker Aston Martin mentioned it plans to chop as much as 500 jobs, “reflecting lower than originally planned production volumes and improved productivity across the business.” It employs about 2,600 folks globally.

The job cuts are anticipated to start in August, based on an organization spokeswoman. The announcement comes per week after Aston Martin mentioned Tobias Moers, CEO of Mercedes-AMG, would succeed Andy Palmer, who resigned, as CEO efficient Aug. 1.

Aston Martin’s employment reductions are a part of a plan to chop prices on an annualized foundation by about £28 million ($35.6 million). The restructuring is anticipated to price about £12 million ($15.three million) in 2020, the corporate mentioned.

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